Bitcoin’s (BTC) daily chart shows a shift from a significant rally to a consolidation phase. After rising from $56,500 on May 1 to $71,958 on May 20, bitcoin’s price has fluctuated within a narrower range, indicating market indecision. Key resistance is at $71,958, while support has moved from $56,500 to around $66,000. Trading volume has decreased during this consolidation, suggesting reduced market activity.

On the 4-hour chart, BTC displays a short-term bullish trend with higher highs and higher lows, peaking at $70,601. This is followed by a corrective phase with lower highs and lows, reflecting increased selling pressure. The primary resistance is at $70,601, with support around $67,096. Significant volume spikes at these levels indicate substantial trading activity, which traders should monitor closely.

The hourly chart provides a detailed view within the larger daily and 4-hour trends. A recent dip to $67,105 was followed by a minor rally to $69,524 and a subsequent pullback, indicating short-term fluctuations. Key resistance is at $69,524, with support around $67,105. Candlestick patterns show consolidation, with small bullish and bearish engulfing patterns suggesting short-term movements.

Oscillators offer mixed signals. The relative strength index (RSI) is at 55, indicating neutrality, while the Stochastic oscillator is at 42, the commodity channel index (CCI) at 38, and the average directional index (ADX) at 22 suggest a lack of strong momentum. The awesome oscillator is at 3506, and the momentum at -1830 indicates a positive signal, while the moving average convergence divergence (MACD) at 1167 suggests a bearish signal.

Regarding moving averages (MAs), the picture is more bullish. The exponential moving averages (EMAs) for 10, 20, 30, 50, 100, and 200 periods are giving bullish signals. In contrast, the simple moving averages (SMAs) present a mixed outlook: the 10 SMA at $68,529 indicates bearish momentum, while the 20 SMA at $67,226, 30 SMA at $65,527, 50 SMA at $64,872, 100 SMA at $65,400, and 200 SMA at $54,135 all suggest bullish sentiment. This alignment generally supports market positivity, albeit with caution advised around the shorter-term SMAs.

Bull Verdict:

The majority of bullish signals from the MAs and the potential for a breakout above key resistance levels identified in the daily and 4-hour charts suggest a positive outlook for bitcoin. Traders might consider buying at support levels and watching for confirmation of a continued uptrend.

Bear Verdict:

Despite the bullish signals from most MAs, the mixed signals from oscillators, including the MACD sell signal and the neutral RSI stance, suggest caution. Market consolidation and decreased volume could indicate potential for further sideways movement or a pullback, advising traders to remain vigilant for signs of a downtrend.