In this last week, the price of Bitcoin fell 29% to reach a 3-month low at $ 42,250. Last week $ 5.5 billion in long contracts were settled, which is certainly a record in absolute terms.
Bitcoin found strong support at the 2/8 murray zone, around 43,750 and reaching the low of 42250, the psychological level of 40,000 is now on the minds of investors to sustain the uptrend of BTC.
The CEO of Tesla caused a stir on Twitter, when his opinion on Bitcoin came to light, and within hours BTC / USD began to sell immediately after the news.
Given that Musk seems to be in a war with the cryptocurrency community, Bitcoin is surprisingly volatile to panic and euphoria, it is undoubtedly the main engine of the market, as it is not affected by news such as the Fed, unemployment ... compared to currencies popular, all eyes of traders and investors remain on the Twitter battlefield.
On the 4-hour chart, you can see the last few candles that have left wicks around the 42,250 area, bouncing above this level, which means there could be a period of consolidation.
Also, if the BTC consolidates and trades above 43,750, we could buy with targets at the SMA of 21, (46,798) above this level the downward pressure could disappear and a new momentum to the 54,717 zone (200 EMA) can occur.
Our recommendation is to buy above 43,750 with targets at 46,798, 50,000 and 54,717.
Support and Resistance Levels for May 18 - 19, 2021
Resistance (3) 49,213
Resistance (2) 47,581
Resistance (1) 46,927
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Support (1) 42,280
Support (2) 39,857
Support (3) 38,897
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Trading tip for BITCOIN for May 18 - 19, 2021
Buy above 43,750 (2/8 of murray), with take profit at 46,798 (SMA 21) and 54,717, stop loss below 41,000.
The material has been provided by InstaForex Company - www.instaforex.com