empty
16.05.2023 10:31 AM
Bitcoin approaches $28.2k level: what to expect ahead?

Bitcoin started the new trading week on a bullish note. The cryptocurrency price reached a level of $27.5k at one point, but it failed to consolidate above this mark. Subsequently, the bears took over, and BTC returned to the $26.5k level.

This image is no longer relevant

Despite the bearish sentiments in the market, the asset found local support near the $26.5k level. The strong support zone triggered a local price pullback, causing Bitcoin to settle above the $27k level. At this stage, this cryptocurrency movement should not be taken as a signal to reverse the trend.

Bulls' main target: $28.2k

If Bitcoin continues its upward movement and overcomes the local resistance level at $27.5k, the asset will pave the way to $28.2k. This level is the key target for the bulls, reaching which will finally complete the local correction cycle.

This image is no longer relevant

The neckline of the "head and shoulders" technical analysis pattern, which was fully worked out last week, runs near the $28.2k level. Also, the $28.2k mark serves as a powerful resistance zone where the downward trend level from April 14 passes. At that time, the price tested the $31k level and began to decline.

This image is no longer relevant

Considering all of the above, the main task for the bulls in the near future will be to finally end the bearish period. For this, a bullish breakout and consolidation above the $28.2k–$28.5k level is required. As of May 16, the bulls do not have the necessary potential, so further consolidation should be expected.

Negative scenario

If, in a positive scenario, BTC/USD makes a full bullish breakout of the $28.2k level, in a negative development, there could be several scenarios. The Bitcoin price can make a false breakout of the level and drop back to $26.5k. There is also a possibility that Bitcoin will fail to overcome the $28k mark.

This image is no longer relevant

In any of these scenarios, the probability of ending the bullish trend significantly increases. The asset will retest the $25k level and continue to decline to $24.6k, where the base of the bullish trend is. If the $28.2k breakout is unsuccessful, the potential for BTC's downward movement reaches the $23k mark.

BTC/USD Analysis

As of 08:00 UTC, BTC/USD managed to recover slightly in price and reach the $27.1k level. However, there is no talk of a full consolidation, as there is an active seller in the market. At the same time, there is a surge of buyers who managed to push the price up in another attempt to decline.

This image is no longer relevant

On Friday, May 12, the cryptocurrency price hit a local low at $25.8k. Obviously, in the coming days, we will see more bullish impulses and attempts to "climb" to the $28.2k mark. This is suggested by the growing network activity, which should be followed by an increase in trading volumes.

This image is no longer relevant

On the daily chart, the cryptocurrency's technical metrics point to a flat price movement. The stochastic and RSI continue to move sideways near the 40 level. Meanwhile, the MACD has exited the red zone but continues to decline.

This image is no longer relevant

On the 4H chart, we see the first signals for a likely development of an upward surge. The RSI has taken an upward direction, and the stochastic has formed a bullish crossover. The MACD has entered the green zone but retains a flat direction.

Conclusion

In the coming days, we will see more intraday price surges due to increasing BTC volatility. The labor market report publication on Thursday and the speeches by the Fed members on monetary policy on Friday will serve as catalysts for an increase in trading volumes, and we will see more active price movement.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin may resume its uptrend

Bitcoin posted a strong rally yesterday. After breaking through the $90,000 level, the leading cryptocurrency surged toward $94,000, where the advance temporarily stalled. Ether also saw impressive gains. After trading

Jakub Novak 12:59 2025-04-23 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 23

Bitcoin has successfully pushed above $90,000, while Ethereum added more than 10% in just one day, rebounding to $1800. The main catalyst was Donald Trump's statement yesterday, clarifying that firing

Miroslaw Bawulski 09:03 2025-04-23 UTC+2

BTC/USD Analysis – April 22nd: The Moment of Truth

The wave structure on the 4-hour chart for BTC/USD is quite clear. After completing an upward trend consisting of five full waves, a downward segment began forming, which currently appears

Chin Zhao 11:49 2025-04-22 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 22

Bitcoin Returns to the $88,000 Zone, but Ethereum Is Facing Challenges Yesterday's sell-off during the U.S. session, once again triggered by a decline in American stock indices, was offset

Miroslaw Bawulski 08:18 2025-04-22 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 21

Bitcoin and Ethereum, having spent the entire weekend moving sideways within a range, surged sharply during today's Asian session. The rally was triggered by rumors that U.S. Federal Reserve Chair

Miroslaw Bawulski 09:03 2025-04-21 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 18

Bitcoin and Ethereum remain within their sideways channels, and the inability to break out of these ranges could jeopardize the prospects for a broader recovery in the cryptocurrency market. However

Miroslaw Bawulski 09:00 2025-04-18 UTC+2

Interest in Bitcoin and Ethereum Is Returning

While Bitcoin and Ethereum still struggle to regain strength and re-enter a bullish market—constantly alarming investors and traders with sharp declines toward the lower bounds of the sideways channels they've

Jakub Novak 06:52 2025-04-18 UTC+2

Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Thursday April 17, 2025.

After successfully exiting the Ascending Broadening Wedge pattern on the 4-hour chart of the Litecoin cryptocurrency followed by the appearance of Divergence between the Litecoin price movement and the Stochastic

Arief Makmur 06:40 2025-04-17 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 16

Pressure on the cryptocurrency market returned yesterday after traders and investors triggered a sell-off in the U.S. stock market. As I've noted repeatedly, the correlation between these two markets

Miroslaw Bawulski 09:01 2025-04-16 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 15

Bitcoin strengthened its position fairly well, nearly reaching the 86,000 level. Ethereum also showed gains but lost them by the end of the U.S. trading session. With easing tensions over

Miroslaw Bawulski 09:08 2025-04-15 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.