BTC/USD pair uptrend, formed back in 2015, continues. Development of the trend has gained such momentum, that the price in May has been beating its maximum almost every day.
Key levels have been left far behind and now a formation of new support and resistance zones should happen.
At the current growth rate, it is hard to see key levels on a daily chart, there aren't any right now. But on the four-hour chart, we can spectate the shaping of key points.
- $1,616. If correction begins, one should carefully watch the price at the $1,616 area. It is highly probable that buys will start from this particular point.
- The less powerful level is $1,700. If the price goes higher and shows new highs, then support level will probably move to $1,700.
If we outline support zones, right now it is $1,800 high. But this level is still weak as well.
BTC is highly probable to reach $1,900 in the nearest two to three days. Correction is also likely to take place.
The best strategy at the current moment is to wait for the shaping of strong support/resistance zones.
Do not forget to watch the news. ETF-related questions, Winklevoss Bitcoin Trust, will be widely discussed in the nearest future. The media buzz will strongly influence the price throughout May.
Potential key levels:
- Buyers are currently focused on the 75 to 80 zone.
- Resistance zone is $100 high.
It is highly probable, that due to the uptrend pressure, we will see $100 tests and new highs once again.
Apart from technical analysis and level outline, it is necessary to take into account the positive news background around Ethereum. This fact also plays into buyer’s hands.
General uptrend pressure along with other factors made the coin to $0.25 trading.
The chart shows volatility over the last couple of days.
To outline key levels we should descend into a smaller timeframe.
A 30 percent volatility is okay for Ripple recently.
Even the four-hour chart makes it hard to outline key levels.
And even if we try to do it, they will not be relevant due to volatility.
One should expect the shaping of a Ripple channel in the nearest future. This coin has proved stable throughout its history. Therefore, a 10 percent channel formation seems a likely turn of events.
If you are interested in this asset, watch for volumes around potential levels and, of course, the news.
SegWit’s idea has been welcomed warmly within the community.
Apart from the uptrend, strong levels are invisible on the daily chart.
So, right to the four-hour chart. Right now $32 looks like a strong support level and to outline high as resistance level is not recommended.
Good buy zones will help cut risks, right now it is a $32 local zone.
If the price does go lower, and the correction will be stronger, the $22 area will be a bull outpost. It is worth mentioning, however, that it is an unlikely turn of events. A new $38 test is most probable.
In general, SegWit news has worked itself out pretty much. It will no longer be a strong growth multiplicator.
We expect the following:
- consolidation at current levels $32 to $38
- volatility decrease
- harder link to the general index of cyber economy