Bitcoin Technical Analysis: BTC Price Feared To Drop Below $27,000 Again!

Key Takeaways:

• After trading under the bearish influence, Bitcoin price closed last week’s trade on a bullish note and presently attempting hard to sustain above the gained levels
• Even though bulls have gained significant strength, bears do not appear to be weak enough and hence keeping the rally elevated could be a tedious job for them

Technical Analysis for May 2023

The trade for May began on a bearish note as the prices slumped hard from $30,000 to levels close to $26,000. The bears managed to keep the prices consolidated below $27,500 for almost a month until the recent push lifted the price above $28,000. Presently, the price is facing a slight pullback as the bulls appear to have exhausted themselves, lifting the price high. Hence, a notable pullback currently, appears to be imminent. 

Besides, the trading volume remained consolidated below 100K throughout the month, which kept the volatility levels pretty low. Hence, the price was compelled to remain consolidated until the recent breakout. The price has now entered the bullish pattern again, flashing the possibility to go long for the next few days. Hence, the BTC price is believed to maintain a healthy upswing toward the resistance at $30,800.

Read More: Bitcoin Price Prediction

Technical Analysis at a Glance

Technical Indicators & Pivot Levels

Pivot Levels

The bitcoin price was trading along the diagonal support that it lost recently. The recent upswing lifted the price high within the ascending triangle. Unfortunately, fresh bearish pressure dragged the price fairly lower, below the diagonal support. Presently, the indicators are pretty bullish or neutral, which indicates the price may undergo a minor upswing ahead.

Besides, the RSI and ADX are neutral in both time frames, which indicates the price may remain consolidated for a while. Besides, MACD is also flashing bullish signals in STF and HTF, indicating the buying volume is slowly accumulating. Hence, a firm upswing could be on the horizon. 

Bitcoin On-Chain Analysis

Bitcoin Hash Rate

Source: Coinmetrics.io

The Bitcoin hash rate, which determines the computational power required to validate a transaction and add the block to the chain, has been incremental since the beginning of 2023. Although the levels witnessed multiple pullbacks, the ascending trend remained intact as the hash rate marked new highs at 440.71 million this month and is currently trading at 394.1 million. 

Bitcoin Active Address Count

Source: Coinmetrics.io

The daily active address is the active address count of all the consolidated buy, sell, or swap addresses. An address is considered only once, irrespective of the number of trades placed. The levels have slightly deviated towards the south ever since the active address count plunged hard on May 07. This indicates user activity on the platform has dropped in recent times. 

Bitcoin Supply in Top 100 Addresses

Source: Coinmetrics

The supply in the top 100 addresses can be considered the whale addresses, as they hold 1% of the circulating supply. The supply in the top 100 addresses had risen fairly since the beginning of the year, but with the start of the current month, the levels dropped heavily from 2.88 million to 2.83 million. Hence, the drop in levels may harm the BTC price in the future. 

CoinDCX Futures Trading

CoinDCX, along with being India’s leading crypto exchange, also offers the user the ability to trade in the futures market. Here, one can maximize their earnings from the crypto market. Moreover, one can also participate in the global crypto futures market, which offers high liquidity and lower slippage costs. 

Bitcoin (BTC) Technical Analysis for Short-Term

Source: Tradingview

• The BTC price again faced rejection from the upper descending trend line and is currently trying to hold the support at 200-day MA levels
• A rebound from these levels may enable the price to rise beyond the interim resistance at $27,862 which may in turn propel the price to the upper target above $28,200
• As the bearish influence appears to have intensified, the possibilities of reaching the lower support zone between  $27,440 and $27,331 appears pretty high
• Hence, if the bulls manage to hold at these levels and trigger a rebound, then one can expect a minor recovery, else the bearish trend may continue

Bitcoin (BTC) Technical Analysis for Long-Term

Source: Tradingview

• The BTC price in the long term appears to be extremely bullish and preparing for a massive explosion
  
• The price has just reclaimed above the crucial 200-day MA levels that it had lost in June 2022 and despite a bearish action, managed to trigger a rebound
• Although the volume is comparatively low, the bulls are expected to lift the rally towards the immediate resistance zone between $30,612 and $31,747

Additional Read: Bitcoin Ordinals Reaches Over 10 Mn Ordinals Inscriptions

Where & How to Buy Bitcoin (BTC)

Bitcoin can be purchased here on CoinDCX App which is India’s largest crypto exchange. All you need to do is download the App, enter the required details, and complete the KYC. Once your profile is verified, fund your wallet and buy Bitcoin. 

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