Technical Analysis of Bitcoin on May 24, 2025: Trends and Predictions

Technical analysis of Bitcoin on May 24, 2025, exploring resistance, support, and indicators.

The technical analysis of Bitcoin on May 24, 2025, indicates a short-term bullish trend within an ascending channel on the 4-hour timeframe. Bitcoin is currently trading around $108,000, with recent attempts to break the key resistance zone of $110,000-$112,000. However, selling pressure at this level has prevented price consolidation above it. Key resistance zones are currently at $110,000-$112,000 and the psychological level of $120,000. These levels have historically acted as price barriers, with high trading volume indicating strong seller activity. On the support side, key levels are at $105,800, $102,500, and $98,000. The $105,800 level has been tested multiple times recently and has held as strong support. A break below this could lead to a correction toward $102,500 or even $98,000. Technical indicators provide valuable insights. The Relative Strength Index (RSI) on the 4-hour chart is at 65, signaling a bullish trend with potential overbought conditions if it exceeds 70. The 20-period and 50-period Exponential Moving Averages (EMAs) are below the current price, with an upward slope confirming the positive trend. However, the Ichimoku Cloud shows a narrow gap between the Tenkan-sen and Kijun-sen lines, suggesting the bullish momentum is not overly strong, with potential for range-bound movement. Trading volume has increased recently, particularly at key resistance and support levels, reflecting investor interest. A recent false breakout at $110,000 indicates the market is not yet ready for a strong upward move. Traders should watch for confirmation of a breakout or consolidation at these levels. From a price pattern perspective, Bitcoin is forming an ascending triangle on the 1-hour timeframe. A breakout above this pattern could push the price toward $112,000 or $120,000, while a breakdown could lead to a decline toward the mentioned supports. Overall, Bitcoin is in a short-term bullish phase, but traders should remain cautious of resistance zones and potential corrections. A prudent strategy involves waiting for breakout confirmation or support rebounds, with close monitoring of trading volume.