Pro Charts: Crypto

Technical Analysis: Bitcoin Price Action Update For Investors

Updated: May 18, 2024 | Published: May 18, 2024
Verified Investing
By Verified Investing
Technical Analysis: Bitcoin Price Action Update For Investors

Bitcoin continues to chop inside a parallel channel. After hitting nearly $74,000, Bitcoin has been digesting the move and bouncing between that all-time high and the mid $57,000 range.

From a purely technical chart analysis perspective, the Bitcoin channel is bullish. It shows Bitcoin is consolidating sideways to lower after the monster rally that took Bitcoin from the $15,000 range to its all-time high of $74,000.

Traders will be watching the high end of the channel, around $69,000. That is the breakout level that sends Bitcoin to $74,000 again, and likely much higher.

However, should Bitcoin break below the channel, the $57,000 level, downside may be switch and take it quickly to $50,000.

The key risk for Bitcoin remains the risk asset market. Should the stock market ever have a sharp pull back of 10% or greater, Bitcoin would likely sell sharply, as much as 20-25%.

The long-term narrative remains fully intact regardless of near-term up or down moves. The more printing of money, the more valuable Bitcoin likely becomes.