Bitcoin formed lower highs and higher lows on its 24-hour chart thus creating a symmetrical triangle formation. The coin’s price was rejected on its resistance in the last 7 days and is setting its sights on the bottom. Currently, the bitcoin bears seem to have the upper hand, however, the bulls might return in the next support when the market correction ends.
Currently, the 100 SMA is holding a dynamic support. However, the moving average is below the longer term 200 SMA, thus the path of least resistance is still to the downside. As such, the support levels are more likely to break than to hold. The RSI is moving down proving that sellers are controlling the movement, but the oscillator is nearing oversold levels so a return in bullish pressure may be unavoidable. If the current support of $8,000 is able to hold, the coin could recover to the top triangle at the $9,000 level.
On the downside, if the bulls fail to defend the support zone between $7,900 and $8,400, the bitcoin bears might return, and a fall to $7,000 may be on the cards. However, if the support holds, the coin may stay range bound between $8,000 and $10,000. The 50-day SMA has been flat for the past few days, while 20-day EMA has become flat for the last 7 days. This proves that the BTC/USD pair may soon enter a consolidation period.
Bitcoin lost around 6% in the last 24 hours, moving from $8,824 on 15th May to about $8,225 on 16th May. Currently, the coin is trading at $8,300, but the bullish momentum is gaining traction. The market is driven by speculative sentiments and technical factors since there is no fundamental news that might have triggered the sell-off. Thus, it seems the much-touted consensus conference in New York has failed to cause a bullish trend thus far.
Do you think the bulls will manage to return to the next support level?
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