Bitcoin (BTC) Market Analysis — May 23
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Bears continue to hold market dominance in the crypto space as Bitcoin (BTC) and other altcoins bleed on Sunday. The entire market capitalization has dropped by over $180 billion over the past 24 hours.
Nonetheless, Bitcoin has slowly reclaimed more market dominance over the past few days, as the benchmark cryptocurrency claims 46% of the total valuation.
BTC appeared to be on a recovery path just yesterday, reaching an intraday high of around $38,860. However, bears were not done with the market yet and dragged prices lower, recording a daily low of $33,860.
From a longer-term perspective, the primary cryptocurrency’s performance still falters. BTC is down by 29.5% over the past seven days, with a weekly low at $30k
Bitcoin’s market dominance recovery is a healthy sign that the cryptocurrency is recovering faster than other cryptocurrencies in the market.
Sunday’s market crash is a continuation of the crypto market decline triggered by an announcement from China. On Wednesday, the State Council of China reiterated its intention to crack down on cryptocurrency trading and mining activities in the country.
This action is not the first or second time the Chinese government has touted banning cryptos.
Key Bitcoin (BTC) Levels to Watch — May 23
Bitcoin’s inability to clear the $41k resistance area on Friday sent it spiraling to the $33.5k low. Shortly after, BTC posted a rebound to the upper-$38k region but failed to clear the crucial 50 SMA resistance, which pushed it to the $33,860 support earlier today.
That said, the cryptocurrency is attempting another rebound from the $33.8k towards the confluence of resistance (50 SMA, channel top, and resistance line) $37.5k level. A successful break above this line could help Bitcoin overcome the prevailing bearish trend.
However, failure to scale this resistance could send BTC to the $34 – $33k support area over the coming days.
Meanwhile, our resistance levels are at $36,000, $37,500, and $39,500, and our key support levels are at $34,200, $33,000, and $32,000.
Total Market Capitalization: $1.44 trillion
Bitcoin Market Capitalization: $661 billion
Bitcoin Dominance: 46%
Market Rank: #1
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