Bitcoin Technical Analysis: Trend and Key Levels on May 21, 2025

Technical analysis of Bitcoin on May 21, 2025, focusing on resistance, support, and indicators

On May 21, 2025, Bitcoin (BTC) remains a cornerstone of the crypto market, with its technical analysis drawing significant attention from traders. Bitcoin’s price is trading around $106,000, having rallied from $95,000 in recent weeks to a peak of $108,786 in January 2025. However, recent volatility suggests selling pressure near key resistance levels. Daily timeframe technical analysis reveals Bitcoin forming an ascending channel since mid-April 2025. The price is currently near the upper boundary of this channel, indicating strong buyer momentum. However, technical indicators like the Relative Strength Index (RSI) at 71 signal overbought conditions, which could lead to a short-term price correction, especially if the $108,000 resistance holds. Key resistance levels are at $108,000 and $115,000. The $108,000 level is critical due to recent price highs and high trading volume in this zone. A breakout above this could target $115,000, a significant psychological and technical level. Conversely, key support levels are at $95,000 and $90,000. The $95,000 level aligns with the 50-day moving average (MA50) and acts as robust support. The MACD indicator presents mixed signals. While the MACD line remains above the signal line, indicating a continued bullish trend, the narrowing gap between them suggests weakening momentum. Additionally, a bearish divergence in RSI is observed, where the price hits new highs, but RSI forms lower highs, potentially warning of a price pullback. Moving averages play a crucial role in the analysis. The 50-day moving average is at $92,688, and the 200-day moving average is at $89,089. Bitcoin is trading well above both, confirming a strong bullish trend in the medium and long term. However, the significant distance from the 200-day moving average may indicate an overextended uptrend. Trading volume provides further insights. Bitcoin’s daily trading volume reached approximately $78 billion on May 21, 2025, reflecting high market activity. However, a slight decline in volume compared to recent price highs could signal reduced buyer participation. From a price pattern perspective, Bitcoin recently formed a double-top pattern near $108,000, which may indicate a pause in the uptrend and the start of a correction. However, a sustained break above $108,000 would invalidate this pattern, increasing the likelihood of further gains. In the short term, traders should monitor the $95,000 support and $108,000 resistance. A breakout above resistance or a bounce from support could guide trading strategies. For long-term investors, accumulating at key support levels like $90,000 to $95,000 may present attractive opportunities. Overall, Bitcoin exhibits a strong bullish trend on May 21, 2025, but overbought signals and divergences warn of a potential short-term correction. Traders should employ careful risk management and monitor indicators for informed decisions.