Bitcoin (BTC) fought to hold above the $27,000 buy-wall as it closed the trading week on May 14. The big crypto closed the week $27,016 on Binance despite the 4.5% recorded on Sunday.
At the time of writing, Bitcoin is going for $27,588, up 1.98% on the day and 3.5% over the last seven days. Its 24-hour trading volume is at $12.74 billion. Despite the recent downturn, BTC’s market value remains above the half a trillion marke – $532 billion – cementing its #1 position according to the CoinMarkertCap ranking.
BTC appears to renew optimism amongst traders as it flips $27,500 back into support. This is a serious trigger for continuation on the upside. This means that the market might be close to a temporary bottom bringing new yearly highs into the picture.
The Relative Strength Index (RSI) was facing upward, an indication that there were more buyers than sellers on the weekly timeframe. The price strength at 60 suggested that the buyers were in more control of the BTC price.
In addition, the price of the pioneer cryptocurrency was sitting on top of the 50-day Simple Moving Average (SMA), currently at $22,028. Increased demand from this area could push Bitcoin higher to produce a weekly candlestick close above $31,515.
If this happens, BTC may climb to confront resistance from the $38,824 barrier, representing a 41% uptick from the current price.
BTC/USD Weekly Chart
Traders could expect Bitcoin’s upside to be capped at this point over the next few weeks. This is because the area between $31,500 and $38,800 – indicated by the orange bands, is a significant weekly supply zone.
This presents a stubborn roadblock in BTC’s path. Also note that the 100-day SMA, at $33,170 is sitting within this region, reinforcing the stiffness of this barrier.
Note that the last time the flagship cryptocurrency moved from this zone was to the downside. This was between April and June, 2022 when Bitcoin plummeted 54% to set a swing low around $17,600.
If a similar scenario plays out, it would mean that even though the largest crypto by market value rises to trade within the supply area, intense selling by investors who are booking profits or those who want to breakeven may reject the price.
This would cause BTC to turn down, this time breaching the 50-day SMA with the next logical move being the $15,000 support wall.
