After a steep slide downwards towards the 30k region, we expect a little pull back which we need to take our longs on. At this level, we have drawn a strong monthly, weekly support which needs a rebound. A mere correction from this support tends to be around 4-5k. We will be taking this counter trade till 35,000.

It should be noted that the trend is still bearish and we need to break even our trade as soon as we get in profits. 

The market has formed a bullish pennant and has tapped the lower trendline. A rejection from this trendline will be the next markup towards our potential target. The upper trendline is still above the current prices and may take time to tap it. 

Currently, there is no indication of the retracement on the daily chart.  Therefore, we don't have a technical factor attached to it.

As per the trend, both the EMA's are bearish and have a potential to tap either of the EMA for a retest. At the resistance level drawn, we may anticipate an EMA retest which is potentially our profit target. 

Currently, both the oscillators are in an extended over sold region. RSI is at 28 and CCI at -267. These over extended over sold regions need to be corrected and neutralized given, we stand BTC at a solid higher time frame levels of support. Therefore, this confluence is going to have a technical impact on the corrective move. 

A slight correction on BTC expected

May 10 2022

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