- Bitcoin price flirts with the 50-day EMA as a breakdown to $7,200 looms.
BTC/USD price consolidation is set to continue before the breakdown based on the prevailing technical picture.
A contrary motion was witnessed in April where Bitcoin kept hitting on the 50 EMA but then it was it was resistance. This movement eventually weakened the resistance and Bitcoin pumped strongly upwards. The testing of the 50 EMA support is actually sending out a bearish signal. Once the moving average support is shattered, expect Bitcoin price to plummet to $7,200, however, $8,500 would be tested first.
At the time of writing, Bitcoin is trading right at the 50 EMA. The largest crypto is likely to experience consolidation ahead of a drop, but note that at the moment the volume is ultra-low. Moreover, looking at other parameters such as the Relative Strength Index (RSI), we can tell that the drop will not be immediate. BTC/USD sideways trading action which is currently reinforced by the Moving Average Convergence Divergence (MACD) as it clings tightly to the midline, is set to hold for some time.
Support is also embraced at $9,200 and is likely to continue holding as it has done in the last 24 hours. Upward price action could continue to delay because most buyers have retreated to the sidelines in order to avoid the choppy markets. Therefore, the resistance at $9,250 and $9,300 could remain in place much longer.
Bitcoin Key Intraday Levels
Spot rate: $9,210
Relative change: 16.80
Percentage change: 0.18%
Volume: Low
Trend: Sideways trading bias