FX.co ★ Short-term Bitcoin analysis for May 17, 2022.

Bitcoin continues to trade around $30,000 after making a low around $25,000. Price remains in a bearish trend and we continue to consider this bounce as a counter trend move. However we should not ignore the upside potential as long as price holds above $29,000.

Red lines- Fibonacci extension targets

Bitcoin is bouncing after the sharp decline to $25,000. Upside potential for Bitcoin should not be ignored as a move towards the blue resistance trend line or the 100% extension target at $35,200 is very probable if bulls continue to hold price above the recent lows. The big question is if the entire decline from its $48,200 high is over! If the entire decline is over we could see price bounce towards $40,000. Until then traders need to be cautious.