Bitcoin price is trading around the psychological level of $30,000. It has bounced off the low of 26,554 and moving with a slight bullish bias in the short term.
According to the daily chart, we can observe an inverted pennant technical pattern. A sharp break below 29,500 and a daily close below this level could mean a continuation of the downward movement and BTC could reach 0/8 Murray at around $25,000.
On the other hand, a break and a daily close above 2/8 Murray located at 31,250 could mean the advance of Bitcoin and its price could reach the 21 SMA at 33,879.
We can see on the daily chart that Bitcoin is under strong downward pressure, as the 200 EMA is around 41,973 and additionally the 21 SMA exerts downward pressure. A pullback towards this area will be seen as an opportunity to continue selling BTC in the coming days.
Some traders and investors believe that Bitcoin could start to rally and could reach the psychological level of $40,000. This confidence is due to institutional purchases of Bitcoin, starting to increase in May.
April was markedly bearish. The resurgence of buying in May could indicate that bitcoin has found support between 26,500 and 30,000.
For traders who have a positive eye on the future of bitcoin, they believe that it is the right time to buy. However, we must be careful because below the psychological level of 30,000 the downward movement could accelerate and the price could fall to support of 25,000 (0/8 Murray).
Our trading plan for the next few hours is to wait for Bitcoin to confirm a bullish break to buy above 31,250 or a bearish break below 29,500 to sell. The target on the upside can be placed at the 21 SMA around 33,879, on the downside we can expect it to fall to 0/8 Murray at $25,000.
