Current situation: Bitcoin (BTC) is currently trading around historically high levels, having surpassed $111,000 in recent days, marking the highest daily close ever on May 21, 2025. The past few days have seen volatility, with the price dipping slightly today (May 23) following news about tariff proposals from Trump on EU imports, affecting market sentiment.
Key influencing factors:
Strong bullish momentum: Despite recent declines, Bitcoin remains in a strong upward trend in the short and medium term. The Relative Strength Index (RSI) indicates an overbought area, which may suggest the possibility of a correction or consolidation in the short term.
ETF fund flows: Bitcoin and Ethereum exchange-traded funds (ETFs) continue to attract significant inflows, reflecting increased institutional interest and supporting the price.
Economic and political news: News like tariff proposals can affect investor sentiment and lead to short-term volatility.
Liquidity and volume: Trading volume in the last 24 hours has decreased, which may indicate a period of consolidation.
Technical analysis (short term):
Resistance levels:
Immediate resistance: around $111,000.
Next resistance: $112,000, then stronger psychological levels at $115,000 and $120,000.
Support levels:
Immediate support: around $107,000.
Strongest support: the 20-day EMA (Exponential Moving Average) around $103,000, then $100,000.
Possible scenarios for the day (next 24 hours):
Bullish scenario (most likely):
If institutional interest and inflows into ETFs continue, and market sentiment stabilizes, Bitcoin may attempt to break the resistance level of $112,000.
If it successfully consolidates above $110,000, it may target higher levels like $115,000.
Bullish momentum supported by positive trading volume can push the price towards these targets.
Bearish scenario:
If negative news continues or significant profit-taking occurs after recent highs, Bitcoin could drop to the support level of $107,000.
Breaking this level could lead to further declines towards the 20-day EMA (around $103,000) or even the $100,000 level.
A weak bearish divergence in the Relative Strength Index (RSI) suggests the potential for a price reversal from current levels.
Neutral scenario (consolidation):
Due to Bitcoin reaching overbought levels recently and facing some resistance, the price may enter a sideways consolidation period.
Bitcoin could trade in a tight range between $109,000 and $111,000 with attempts to break either direction.
Recommendation:
Given the overall bullish momentum of Bitcoin in the medium term, but with some technical indicators suggesting a potential correction or consolidation in the short term (like overbought in RSI), the recommendation for today is caution with a bias towards upward movement.
For short-term traders (Intraday Traders):
Buy on dips: Look for buying opportunities if the price retraces towards key support levels (such as $107,000 or $103,000) with signs of a rebound.
Monitoring resistance levels: Be cautious when approaching resistance levels such as $112,000, as the price may face some pressure.
Risk management: Use stop-loss orders to protect capital, especially in a volatile market.
Monitoring volume: An increase in buying volume at support levels or an increase in selling volume at resistance levels can provide additional signals.
$btc