Weekly Bitcoin OutlookDuring the week of May 1-8, the Bitcoin price was rejected by the $10,500 resistance area and the long-term descending resistance line that had been in place since the all-time high of December 2017. This created a long upper wick — a sign of pressure. Bitcoin followed this by creating another weekly bearish candlestick, which engulfed the previous bullish one. If this is the beginning of a reversal, the Bitcoin price could decrease all the way to the 0.5-0.618 Fib levels of the entire increase, found between $6000-$7000.
Short-Term MovementIn the shorter-term, the Bitcoin price has just fallen below both the $9300 support area and the 50-day moving average (MA), both of which halted the rapid decrease of June 11. This is a bearish sign that suggests that the price will head lower. If it does so, the closest support area is found at $8800. In the hourly chart, we can see that Bitcoin is possibly trading inside of a descending wedge — which is considered a bullish reversal pattern. Additionally, while the price has decreased more than it did on June 12, the volume has been lower. This has generated bullish divergence in the hourly RSI — a sign that a reversal is near. A continued decrease within the wedge after validating the support/resistance once more would take the price to the $8800 support area previously mentioned. To conclude, the Bitcoin price has been decreasing considerably since reaching a high of $10,429 on June 2. However, it is trading inside a bullish short-term pattern and showing considerable signs of reversal — suggesting that a short-term upward move is likely to occur. For our previous analysis, click here.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.