Bitcoin Price Analysis: BTC/USD On The Verge Of Break down To $8,000, Double-top Pattern In Action
- Bitcoin price numerous attempts to break above $10,000 nullified as selling pressure intensifies.
- BTC/USD is technically poised for more losses in the near term especially if support at $9,500 is broken.
Bitcoin price progress (recovery) over the last couple of weeks is in jeopardy following the failure to breach the $10,000 level. The initial surge from lows around $8,100 hit a wall within a whisker of $10,000 on May 14. A reversal from this zone confirmed support above $9,000. The bulls, not giving up, launched another attack on $10,000 which also failed on Monday.
Meanwhile, Bitcoin is trading at $9,615 after losing 1.17% of its value on the day. The existing trend is bearish which means the path of least resistance is to the south. The failed attempts to break and sustain gains past $10,000 led to the formation of a double-top pattern (see chart below). The impact of this pattern is often a bearish one especially if buyers continue to lose momentum amid low trading volume.
From a different technical angle, Bitcoin is poised for the aforementioned losses. If the Relative Strength Index (RSI) is taken into account, its downward trend toward the average (50) hints towards a stronger bearish grip. The continued downward movement would encourage more selling entries and that could bring pressure to key support areas including $9,500 and $9,000.
BTC/USD daily chart
The Bullish Scenario
A glance at the moving averages points to a possible golden cross (the 50-day SMA crossing above the 200-day SMA. In other words, if this pattern comes into play and Bitcoin is treated to immense buying volume, price action would be majestic above $10,000. For now, the best the bulls can do is to hold onto the support at $9,500 and keep their eyes on the goal (breaking above -$10,000).
Bitcoin Intraday Levels
Spot rate: $9,614
Relative change: -116
Percentage change: -1.17%
Trend: Short term bearish bias
Volatility: Low
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