Bitcoin Rebounds From Multi-Week Lows

Bitcoin Video 18.05.21.

Bitcoin Managed To Find Support Near $42,000

Bitcoin found support at multi-week lows near the $42,000 level and is currently trying to settle above the $45,000 level.

Ethereum is also moving higher after the recent sell-off, and it is currently trying to settle above $3,500.

In general, trading is calm in crypto markets as traders take a brief pause after the volatility that was seen in recent trading sessions.

Meanwhile, Bitcoin Dominance, which shows Bitcoin’s market capitalization as a percentage of total crypto market capitalization, is stuck near the 40% level. Bitcoin Dominance has been in a downside trend since the beginning of this year, and the continuation of this trend will be a worrisome development for Bitcoin bulls.

Technical Analysis

Bitcoin failed to settle below $42,000 and rebounded above the resistance at $44,000. RSI has just left the oversold territory so there is plenty of room to gain upside momentum in case the right catalysts emerge.

I’d also note that Bitcoin found significant support near current levels back at the end of February so some speculative traders will surely try to pick up Bitcoin at these levels after the recent sell-off.

The nearest resistance level for Bitcoin is located at $46,000. In case Bitcoin manages to settle above this level, it will head towards the resistance at $48,500. A move above the resistance at $48,500 will open the way to the test of the resistance which is located at the 20 EMA at $51,700. If Bitcoin gets above the 20 EMA, it will head towards the resistance at the 50 EMA near $53,500.

On the support side, the nearest support level for Bitcoin is located at $44,000. If Bitcoin declines below this level, it will head back towards the support at the recent lows $42,000.

A move below the support at $42,000 will signal that Bitcoin will try to gain additional downside momentum. In this case, Bitcoin will head towards the next support level which is located at $40,000. A move below the $40,000 level will push Bitcoin towards the support at $37,000.

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