Daily Report – Bitcoin and Market Update (May 21 2022)

HTF 12H:

The middaily chart continues to show a narrow-range consolidation period of decreasing volatility.

After the massive shake-out crash into the 25000 USD area, bitcoin has bounced off the lows and is not trading around 30000 USD area, chopping around. Contracting price action typically is followed by a more explosive movement of abnormal volatility, setting a new direction.

The BPRO Momentum Bands are showing a volatility-based range of prices to be between the 26000 USD Low Band, and the 34000 USD High Band. More likely than not, bitcoin is set to continue trading inside this range of prices. Otherwise, an abnormal volatility breakout would confirm a new trend to resurface in the direction of the breakout.

The CTF Trailer Stop at $33352 aligns with the High Band. In case a break above this level occurs, potentially new price targets appear available at the Level Lines, as follows: 36577, 40063, 42562, 49678

MTF 4H:

The MTF chart attempts to build a base in the low 29000s USD area, as the volatility decreases.

With the CTF Trailer adjusting lower to update the most relevant breakout threshold, now it seems that the main short-term resistance to breach by the bullish side of the market is set at Stop $30493.

However, accounting for the proximity of the round number $30500 I would argue that the short-term bulls need to reclaim both levels in order to turn the market more bullish for the near-term.

Arguably, a clean breakout outside the $30500 could trigger a near-term rally into the 33000 USD area. Otherwise, a breakdown below the 28500 USD support could lead to a further sell-off into the 26000-27000 USD regions.

LTF 1H:

The hourly chart shows very well how clueless the market remains right now.

The Baseline average moves in a sine curve form of movements, while building a base at the mean support region 29000-29300 USD. In case this region fails to hold bitcoin from falling, the low 28000s USD unlocks as a potential breakdown objective.

As long as bitcoin trades above its short-term average, there are more chances for going upwards, than to the downside, as the price leads the average.

Furthermore, the resistance defined by the BPRO Level Lines are given at:

31233
30140

BPRO Level Lines show supports at:

29140
28345

These levels could be anticipated to serve as level-to-level references. In other words, when one level is breached, the next one in the direction of the movement can be expected to act as the next “magnet”

I hope my report helps you save time and money. If needed, catch up with my latest market review linked below.