The current structure of Bitcoin suggests the formation of a downtrend that moves inside a large green channel.
SimpleFX BTCUSD Chart Analysis: May 12, 2022
Since April, there has been a gradual decrease in the value of quotations to the lower green line. However, the price has been in the upper green area for a long time, and the bulls have repeatedly tried to break through the resistance line. At the beginning of this month, the price touched the upper green wall of the green wall, then a sharp downward movement began. This section of the chart describes a descending yellow channel.
In the last section of the chart, we see that the price has reached the upper yellow line. Then there was a rebound, and the price began to decline in the direction of the lower green line. Perhaps the bears are targeting the support level of 21857.25, which is located on the lower wall of the green channel.
Alternatively, market participants can observe a repeated price increase to the upper yellow line and the resistance level of 29228.78. With a successful breakdown of this price level, bulls can bring the market to a higher resistance level of 35935.66, which is located on the upper yellow wall.
With a downward price movement, it is worth thinking about sales. If the market is going to grow, then it is recommended to consider opening long positions.
