Bitcoin Price (BTC-USDT) Analysis for 22 May 2024: Key Support and Resistance Levels Explained by Macro Trader

On 22 May 2024, a detailed analysis of Bitcoin’s (BTC) recent price action was shared by pseudonymous analyst Bitmidas on social media platform X (formerly known as Twitter). This analysis provided an in-depth look at the market dynamics, offering valuable insights into the current and future state of BTC’s performance.

The analysis began by noting a divergence between Bitcoin (BTC) and Ethereum (ETH) on the previous day. While ETH managed to stabilize, BTC struggled, adjusting towards $69,413.07 and eventually bottoming at $69,162.94. It was highlighted that today’s support level is shifting to $69,031.98, and despite the oscillations, the overall trend remains bullish.

There was a significant net outflow of $16.81 billion the previous day. Although the price drop was modest, the high price and trading volume meant that outflows nearly matched the prior day’s inflows. BTC attempted to stabilize but failed to follow ETH’s performance, breaking below $70,495.27 and adjusting towards $69,413.07.

Despite the failed stabilization attempt, BTC is still within a bullish oscillation. The key support zone for the day is identified as $69,031.98 to $68,544.98, with the price likely to oscillate between this zone and $71,016.08. If BTC can maintain the level of $70,495.27 for 4-8 hours, it could potentially target $71,016.08. Breaking this minor resistance might lead to higher targets of $72,860.67 to $73,320.85. However, multiple dips below the support zone of $69,031.98 to $68,544.98 could shift the trend to a bearish oscillation.

Additional data on capital flow shows that the support range is between $68,544.98 and $65,844.59. The daily sentiment remains predominantly bullish at 90%, with a slight 10% bearish outlook. The long/short ratio stands at 1.19, indicating a slight advantage for long positions. Funding rates range from 0.01% to 0.0213%, reflecting a strong but slightly receding bullish sentiment. The total contracts in the market amount to $350.9 billion, a 0.92% increase, and the greed index is at 76, suggesting a high level of market optimism. The turnover rate is at 25%, indicative of active trading.

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The analysis continued by discussing the minor adjustments due to BTC’s failed stabilization. Early data showed a slight tug-of-war between bulls and bears, with bulls attempting to reclaim stabilization points and bears pushing towards the capital flow support levels. The increased oscillation suggests traders should exercise caution.

Despite the recent volatility, BTC remains in a long-term bullish trend. There are no immediate low-entry opportunities, and ongoing observation of macroeconomic data is essential. The long-term strategy still favors buying on dips, reinforcing a cautiously optimistic outlook.

Finally, the broader economic environment was considered. Several Federal Reserve officials made cautious statements, indicating that they are closely monitoring monthly data. They hinted at potential rate cuts in the fourth quarter of 2024, which could have significant implications for the crypto market.

While technical analysis can provide valuable insights into market trends and potential price movements, it does not guarantee future performance. Market conditions can change rapidly due to various factors, including economic events and investor sentiment. Traders should use technical analysis as one of many tools in their decision-making process and remain aware of the inherent risks involved in cryptocurrency trading. Always consider your own risk tolerance and financial situation before making investment decisions.

Featured Image via Unsplash

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• Source: https://www.cryptoglobe.com/latest/2024/05/bitcoin-price-btc-usdt-analysis-for-22-may-2024-key-support-and-resistance-levels-explained-by-macro-trader/