BTC Price Analysis for May 16: $50,000 Test
The first cryptocurrency still looks bearish, but the bulls are starting to emerge from the stupor caused by last week's sharp fall
Saturday was hot for Bitcoiners. The cryptocurrency chart shows a green candle above $50,000. However, the coin rolled back in price during the day, and at the time of writing it was trading at $47,318.
The support level tested on Saturday was 47,000. The price of the cryptocurrency only once broke it, falling to $46 641. However, the bulls quickly bought the fall.
Currently, the $50,000 breach is up again. Then the resistance is at the level of 51.5 and $53,000. We expect the bulls to try to break into this zone on May 16th.
The Bitcoin market is reviving. Despite the fall in capitalisation below one trillion and the decline in value, the volume of trading is growing. Probably the stimulus is local volatility (within $2,000) that has been established in the last couple of days.
In the medium term, the outlook for the cryptocurrency is bearish. This momentum has been going on since the end of April. After setting several record highs followed a reversal of the trend and a deep correction. The new ATH is still a long way off.
In the short term, the market is moving towards higher local highs. A base is being created for further upward movement. If the Bulls can break $50,000 and $51.500 on Sunday, it will create the conditions for a winning rally next week.
You can track the price of bitcoin and trade on Binance.
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