Bitcoin May 21, 2022 – $30,000 support hangs by a thread


Will the king of cryptos still drink the cup? – After a terrible week, cryptocurrency investors are struggling to heal their wounds. In such a way that they are not recovering from the blow behind their heads seeing Bitcoin (BTC) making new lows for the year. And the least that can be said is that the dark streak is likely to continue if the current uncertainties in the financial markets are not appeased.

In this sense, the latest technical analyzes would definitely give birth to a bear market or bear run of BTC. With the key, a sad historical record which would not be likely to foresee a return to grace of the king of cryptos anytime soon. Although a technical rebound could occur at any time given a possible loss of downside pressure, the fact remains that the next support of $30,000 is hanging by a thread.

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Bitcoin – Double four in a row?

One record would replace another. In effect, Bitcoin would be heading straight for an eighth consecutive week of decline. To make matters worse, the unfavorable technical signals are confirmed although the $30,000 support is holding on painfully. Insofar as we do not deplore real excesses in the sale in weekly units, everything would lead to believe that the bear run would continue until a second low point which remains to be definedafter the first around $35,000.

In this regard, the Ichimoku curves attest to this pessimistic scenario. For one, BTC prices and the Chikou Span are significantly below the Kumo (cloud) bottom. And at the same time, they are threatening the $30,000 support. On the other hand, the Kijun which was inside the cloud last week, is now slightly below its lower limit, the Senkou Span B (SSB).

As this was not enough to convince you of this hard reality to accept, the main technical pillars of the bear run of the king of cryptos which are shoulder-head-shoulder (ETE) and downline since his last ATH in November 2021, remain more relevant than ever. And this, as long as major resistances will not be overcome.

Bitcoin – Hesitation around $30,000

If the bleeding has been stopped during this week, the validation of the morning star over the past weekend has a lot to do with it. Because precisely, it allowed Bitcoin to stay in contact with the $30,000 support and the Tenkan in daily units. But nevertheless, its inability to immediately cross this critical level would suggest that a technical rebound would be far from certain.

Bitcoin price analysis in daily units - May 21, 2022

Especially since there are reasons to still be cautious. Not only the price position of BTC and the Chikou Span are similar in weekly units. But still, the Kijun, not far from the resistance of $35,000, could thwart a possible jump from $30,000. And besides, there will be several technical obstacles to tame such as the descending line, the resistance of $38,000 and that of $41,000, which itself corresponds to the neck line of the ETE, to consider a start. favorable trend reversal.

In summary and without sparing the suspense, the bear run of Bitcoin is becoming a reality that would seem to be part of the long term. Although it may displease some, unfavorable technical signals on the weekly chart are obvious exhibits. In particular the change in color of the future Kumo in weekly units which could be a serious obstacle to a favorable trend reversal in the medium to long term.

Personally, I don’t think that an easing of the current uncertainties in the financial markets would be enough to trigger a cryptocurrency rush. We cannot indeed forget as if nothing had happened the collapse of the stablecoin UST, which undermined the confidence of many investors. We will probably settle for a technical rebound which would quickly be aborted by the sellers.

In the event that the support at $30,000 were to give way, the fear of revisiting $20,000 would monopolize the minds of investors, with the support at $26,000 as an intermediate step. In which case it would be an ideal level which would materialize the second low point of the bear run of the king of cryptos.

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