- Bitcoin encounters a minor setback; bulls defend $5,000 key support.
- In the short-term BTC/USD has a bearish bias following Thursday 11 losses.
BTC/USD has encountered a devastating drop following the bullish breakout that tests $5,488.85 (on Coinbase). The devastating drop failed to find support at the 50 Simple Moving Average (SMA) 15-minutes close to $5,300.
The flash drop below the trendline ignited more losses below $5,200 (previous day support). BTC/USD refreshed the lows at $5,000 and is now changing hands at $5,022.30 amid growing bear influence.
BTC/USD short-term outlook
The short-term outlook for BTC/USD has a bearish bias. The Relative Strength Index (RSI), for instance, is moving further down within the oversold. The levels below 25.00 have not been reached since the beginning of April. This means that the current selloff is worse since the surge witnessed last week.
Similarly, the moving average convergence divergence (MACD) crossed into the negative territory to market the beginning of the bear momentum. The signal divergence from the indicator shows that declines are far from over. Besides, it is still trending south at -46.
BTC/USD long-term outlook
The weekly chart shows Bitcoin’s having a bullish bias in the long run. The price is below both the 50 SMA and the 100 SMA. However, trendline support is still in place. In addition to that, the MACD is heading upwards compared to the levels seen between November 2018 and December 2018. In fact, the signal line has crossed above the indicator to show that bulls are gaining traction.
The correction from the current price at $5,022.30 will go head to head with the hurdle at the 50 SMA weekly. Retracing past $6,000 and $6,200 will place Bitcoin in another trajectory likely to mark the beginning of the anticipated parabolic rise.
Key Technical Indicators:
MACD weekly: -426.56
50 SMA weekly: $5,628.13
100 SMA weekly: $6,388.60
RSI 15-minutes: 24.00
Key resistance: $5,200
Critical Resistance: $5,488.85
Ultimate resistance: $6,200
Support 1: $5,000
Support 2: $4,800