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Bitcoin Update for May 18th, 2021

So, not too much has changed for bitcoin over the last few days, bitcoin is still chopping around the $43k level. Looking at the 4-hour chart shows how bitcoin paused at the 21 EMA support for a while before finally breaking through. Bitcoin then dropped down to around the $43k level and has been bouncing around this level over the last 36 hours or so. Unfortunately, I don't expect this level to hold either, the next level of support I see is around the $39k level.

Bitcoin 4-hour Chart

I was hoping to see some strength from BTC down at these prices but so far all we have gotten are small bounces that have all been met with increased selling.

Bitcoin Daily Chart

Looking at the daily chart you can see how bitcoin is holding above the $43k level (green line) but has dropped below and was supported by the 200 EMA which is at about $42k. Also, we can see how both indicators (RSI & MACD) are both trending down in a bearish manner. If bitcoin tests the 200 EMA again and this time the support fails I expect the price to fall to around the $39k level. If that support also fails bitcoin could see a more significant drop down to the mid to even low $30k level.

Bitcoin Weekly Chart

Looking at the weekly chart you can see the box where the price of bitcoin is likely to fall into if the support at $42k to $43k fails. Right now the data on pretty much every time frame looks pretty bearish, this is why I believe bitcoin has more downside coming.

I wish I had a more bullish outlook but I'm just not seeing any signs pointing to a bottom or recovery any time soon.

Take Care!


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