Bitcoin once again facing critical resistance
Hello all,
As we discussed on Friday, the next obvious target for bulls was to confirm their position above the long-term downtrend and break out of the symmetrical triangle pattern by filling the gap between $9,600 and the psychological level of $10,000. They managed to partially achieve half of these goals.
BTC managed to stabilize on Saturday, May 16 after experiencing a significant correction to the downside the previous day:
On Friday, it fell all the way to $9,307 and erased 5 percent of its value. Then on the next day, successfully rebounded and formed a short green candle to $9,400 keeping the pressure on bears.
On Sunday, the leading cryptocurrency continued to rise and ended the week at $9,661 or 12.5 percent higher.
Today, we can clearly see that the upper-end of the triangle formation was hit once again, but Bitcoin is seeing some heavy resistance.
What we need here is to see either another attempt on the diagonal line or at least a close above the horizontal S/R at $9,600.
The third target we are chasing is year-to-date high of $10,360.
In terms of trading volumes, they started to decrease on Friday after peaking at $55 billion and found their bottom at $33 billion on Sunday, which resulted in a 40 percent drop. The RSI is also stable, showing similar values to the ones seen during the February bull run.
What is a little worrying is the potential double top formation that is in the making first on a local level to $10,000, so let's see if we finally manage to find a weak spot today.
Cheers,
As we discussed on Friday, the next obvious target for bulls was to confirm their position above the long-term downtrend and break out of the symmetrical triangle pattern by filling the gap between $9,600 and the psychological level of $10,000. They managed to partially achieve half of these goals.
BTC managed to stabilize on Saturday, May 16 after experiencing a significant correction to the downside the previous day:
On Friday, it fell all the way to $9,307 and erased 5 percent of its value. Then on the next day, successfully rebounded and formed a short green candle to $9,400 keeping the pressure on bears.
On Sunday, the leading cryptocurrency continued to rise and ended the week at $9,661 or 12.5 percent higher.
Today, we can clearly see that the upper-end of the triangle formation was hit once again, but Bitcoin is seeing some heavy resistance.
What we need here is to see either another attempt on the diagonal line or at least a close above the horizontal S/R at $9,600.
The third target we are chasing is year-to-date high of $10,360.
In terms of trading volumes, they started to decrease on Friday after peaking at $55 billion and found their bottom at $33 billion on Sunday, which resulted in a 40 percent drop. The RSI is also stable, showing similar values to the ones seen during the February bull run.
What is a little worrying is the potential double top formation that is in the making first on a local level to $10,000, so let's see if we finally manage to find a weak spot today.
Cheers,
Bad: We are in a clear downtrend on the 1-h chart ever since we hit $9,950 yesterday
Target down - $9,500
Target up - $9,770-$9,780