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The Bitcoin price analysis shows that BTC broke the psychological barrier of $ 8,000, with a loss of -1.19% against the US dollar over the past 24 hours. Is there a temporary correction or could it be the beginning of an opposite trend? We will take a look.
Bitcoin Price Technical Analysis: Market Overview
Bitcoin price 00 seemed to be heading to new heights this morning, after reaching a new 10-month high of $ 8,388. The party, however, quickly escalated into panic, following a series of strong sales that pushed the asset price down to $ 7,700.
BTC is now heading towards a double bearish peak after failing on May 11 to a record $ 8,327. This is a major confidence test for BTC buyers, as a fall below USD 7,700 could be catastrophic for the short and medium term prospects of this asset.
At present, bullish traders are desperately trying to support the decline in Bitcoin's value and have so far managed to find refuge, as well as strong support for the uptrend.
If this level continues, we could potentially see buyers launch a bullish recovery to the $ 8,300 level. If it fails however, it is more than likely that trust will detach from the asset and that the uptrend will reverse.
BTC / USD Chart at 1 Day
On the 1D BTC / USD chart, we can see that the RSI has started to fall back to the channel as the uptrend weakens. The purchase volume on the MACD histogram also decreases as the sales pressure increases.
For now, the 5 ADM (blue line) seems to offer good support that is superimposed on price action as bulls defend the critical level of $ 7,800.
4-hour BTC / USD Chart
On the 4H BTC / USD, we can see a disturbing contradiction between price action and the RSI trend. Over the past 4 days, Bitcoin's price action has consistently recorded high rises. However, on the RSI, the indicator line recorded three consecutive lower troughs (blue arrow). When this happens, the upward trend usually slows down and a reversal is likely to occur.
In the last 24 hours, the RSI has continued to fall by 16%, reaching 54%. Sales volume on the 4H MACD also shows a clear increase and the 12-MA continues to diverge from the 26-MA.
One can also find other bearish signals on the Bollinger Bands, where candles have now fallen below Central AM for the first time in 10 days.
All eyes are now on the high level of support (white line), which has so far contributed to slowing down the price of Bitcoin. The Bulls will have to find their calm at this level so that BTC continues its ascent to new heights. If the bears overcome this support, we could then see Bitcoin fall to a stronger support at $ 6,800 before the bulls retreat.
Trade Bitcoins (BTC), Litecoins (LTC) and other encrypted currencies on the online trading platform Bitcoin forex evolve.markets.
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The views and opinions of the author should not be construed as financial advice. For disclosure, the author holds Bitcoin at the time of writing.
Images courtesy of Shutterstock, Tradingview.com
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