Bitcoin retested the $ 8,000 mark, having formed a “Double bottom” bullish pattern on the four-hour chart. This is a signal for a possible continuation of the restoration of the price, assured CoinDesk analyst Omkar Godboul.
According to the expert, soon “digital gold” may once again move to the mark of $ 8400. However, a significant obstacle on this path will serve as resistance in the region of $ 8350. In addition, trading volumes are gradually decreasing, so there are not many reasons for optimism.
If the price of BTC fails below $ 7432 (minimum of 4 June), the probability of a further decline will increase up to the level of $ 6915, through which the 50-day moving average (MA) passes.
Currently, the first cryptocurrency is trading at $ 7940 (Bitstamp Exchange), reaching a local maximum a few hours ago at $ 8046.
Four hour schedule
The BTC / USD chart of Bitstamp from TradingView
On this timeframe, a breakout of the “Double bottom” pattern is seen, indicating a possible completion of the downward correction from the annual maximum at $ 9,097 . Considering the distance from the base of the pattern to the “neck” line, it can be assumed that the upward movement will continue to the level of $ 8400. The latter can be reached already this weekend.
However, as already mentioned, resistance to growth may be in the region of $ 8,350 and lower trading volumes, indicating a weaker pressure on buyers. Therefore, the restoration of the price promises to be only short-term.
Daily schedule
The BTC / USD chart of Bitstamp from TradingView
On the higher timeframe, amid the declining volumes, a Doji-Dragonfly candle shaped like the letter T has been formed . The long lower shadow of this pattern indicates a significant activity of the bulls that have taken control of the situation. The next big bull candle against the growth in trading volumes will confirm the trend change signal.
To retest $ 9000, bulls need to break through the upper line of the downward channel on the four-hour chart, passing through the $ 8350 mark. Given the bearish divergence on the RSI and the slope of the MA with periods of 5 and 10, this will not be easy.
For a radical change in sentiment in the short term, sellers need to push the price below $ 7432. In the long run, the situation is on the side of buyers as long as Bitcoin is trading above $ 5263.
Earlier, BlockchainJournal published a review of bitcoin price forecasts from prominent experts in cryptoindustry.
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