The price of the first cryptocurrency during the week three times tried to overcome the mark of $ 8,300, but now it risks adjusting to the mark of $ 6,333, CoinDesk analyst Omkar Godboul is sure.
Daily schedule
The BTC / USD chart of Bitstamp from TradingView
On the daily timeframe, you can see the one-day model of the Hanged Man , which often signals a bearish reversal. The emergence of such a candle after the upward movement may indicate a collision with a serious level of resistance, as well as the fact that sellers gradually take over the buyers.
Short-term downward correction will be confirmed if the daily candle closes below $ 7581 (the lower extremum of the Hanged Pattern). After that, the continuation of the decline to the 30-day moving average (MA), which has long served as a reliable support for the price, is likely. Currently, this MA is passing through the $ 6333 mark.
A pattern with a gloomy name will lose its relevance if in the next day the price consolidates above $ 8,200. After that, with high probability, the upward movement will continue to the level of $ 8500.
Four hour schedule
The BTC / USD chart of Bitstamp from TradingView
The lower timeframe shows how on May 19 the price confidently recovered from the level of $ 7,300 to $ 8,000. This sharp increase multiplied by bearish divergences on RSI and Chaikin Money Flow ( CMF ) indicators by zero. Thus, in the short term the next retest of marks in the region of $ 8300 is possible.
On the other hand, as it approaches $ 8,000, trading volumes fall.
#BTC #BTCUSD 8H chart
BTC's move above $ 8K on Sunday. Buy these levels. pic.twitter.com/GOzjLpI20T
– CoinDesk Markets (@CoinDeskMarkets) May 21, 2019 p.
Reducing the interest of buyers at higher levels can serve as a short-term obstacle to further growth.
Earlier, well-known trader Peter Brandt noted that Bitcoin repeats the same patterns on the chart as in 2015, after which its price increased about 100 times.
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