- Bitcoin price has just confirmed a falling wedge pattern on the daily chart.
- Falling wedges have a 62% chance of breaking upwards.
- Bitcoin ETFs have bought $700 million in Bitcoin in the last 3 days.
Bitcoin price is $66,124 today, up 0.2% in the last 24 hours and 4.9% in the last 7 days.
The US consumer price index data fell to 3.4%, which signifies economic stability and is a good indicator for Bitcoin and cryptocurrencies.
Bitcoin statistics
Bitcoin dominance: 52.1% ⬆
Bitcoin market cap: $1.297 trillion ⬆
Total supply: 21 million
Offer in circulation: 19.699 million ⬆
Bitcoin market cap dominance increased to 52.1%, coinciding with red days for most altcoins. This means investors are dumping their altcoins for BTC, but that could soon change as the bull market continues to develop.
Bitcoin price analysis for the last week
Bitcoin price chart
BTCUSDT chart from Tradingview
Last week, Bitcoin price was well below the 50-day simple moving average (SMA) and showed signs of weakness after failing to overcome this indicator.
We expected the price to move lower due to this resistance. The 200-day SMA formed strong support at $52,000.
However, this week’s fundamental news slightly changed the direction of Bitcoin’s price and for the first time in three weeks, the price closed above the 50-day SMA.
U.S. consumer price index data came in at 3.4%, below last month’s record. This signals a slowdown in the inflation rate and consequently predicts a stabilization of the economy.
Following this news, the Dow Jones Industrial Average Index (DOW) crossed the 40,000 mark for the first time. The Bitcoin price also reacted to this news with an increase of 8%.
Falling wedge signals a possible rebound in a few weeks
Bitcoin Price Analysis
BTCUSDT chart from Tradingview
Bitcoin price is now in a falling wedge with the 50-day SMA at the middle of the chart pattern.
We expect the price of the asset to continue falling in the short term, in a tight formation until the $52,000 mark. This could happen in the remaining days of May and possibly early June.
As usual, all technical analysis is usually correct provided all factors remain constant. However, if there were market disruptive news, whether positive or negative, it would override most technical analysis.
On the upside, if Bitcoin breaks out of the falling wedge, there is weak overhead resistance at $67,500 and $73,794 (the current all-time high). After that, BTC can rise to highs of $82,924.
For the coming week, we expect Bitcoin price to correct lower to fill the falling wedge. Therefore, traders betting against Bitcoin can make some profits in the coming week.
DISCLAIMER: The work in this article is based on current events, technical charts, company news and the opinion of the author. It may contain errors and you should not make your investment decisions based solely on what you read here
