Bitcoin Stuck For Now? Morning Crypto Update 5/28

Good morning! Let's take a look at a couple of potential outcomes for the next move in the Bitcoin market. Now that we have had a rather significant drop from all time highs, we have to digest these areas of support and resistance we have created on the way down if we are to continue moving higher.

We can see Bitcoin currently reacting to a recent swing on the 4 hour chart. There are a few possible outcomes to the current price range.

1) Price will either blast through resistance

This doesn't seem likely with volume dropping off as you usually need those extra buy orders to eat up the sell orders waiting at that level.

2) Price consolidates at the resistance we are currently at with low volatility

Usually if a price consolidates at a resistance level that is a good thing because buyers are slowly consuming sell orders at that level making the eventual push up easier. We are currently between many important moving averages which leads to a range in price as there is more resistance.

3) We drop

We can either consolidate and drop as not enough buyers are able to push price up, or we just get another swift leg down.

We are in a holiday weekend here in the states so we may see some pretty low volatility through the next few days as traders take a breather from the madness. I have marked the next levels with possible price moves that we can keep an eye on over the next few days. Only time will tell!

Disclaimer: All of the information presented is for educational purposes only. I do not not recommend the buying or selling of any of the mentioned assets. I do not assume any responsibility for your trading results. There is an inherent risk in trading cryptocurrencies due to volatility and liquidity so trade at your own risk!