Bitcoin Struggles to Hold Support at $27K-$30K
BTC is testing an important support zone, although long-term momentum remains weak.
May 18, 2022 at 5:50 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/FPFND7KX6JCPJE4R2U6HX3MXZM.png)
Bitcoin's daily chart shows support/resistance levels. (Damanick Dantes/CoinDesk, TradingView)
BTC was trading at around $29,000 at press time and is down by 3% over the past 24 hours.
A decisive break below $27,000 could yield further downside targets for BTC, initially toward $17,823. Further, BTC's downward sloping 50-day moving average indicates persistent trend weakness, which could keep sellers active.
Bitcoin faces strong resistance at between $33,000 and $36,000, which could stall an upswing in price. And on the weekly chart, momentum remains negative despite oversold readings. That could increase the risk of a breakdown in price, similar to what occurred in March 2020 and November 2018.
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Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.
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