Bitcoin [BTC] pulled back by 3.88% at the end of day on 22nd May 2019. The price plummeted from $7932 to test low at around $7500. The price of Bitcoin [BTC] at 4: 45 Hours UTC on 22nd May 2019 is $7665. The total market capitalization of Bitcoin lost about $5 billion.
The altcoins also dipped taking a cue from Bitcoin [BTC]. Key support levels on Ether [ETH] at $250, Litecoin at $90 and XRP at $0.4 were also broken as altcoins dropped by more than 5%.
Bitcoin seems to be driving the sentiments of the cryptocurrency markets. The market dominance of Bitcoin over the cryptocurrency market is 56.8%.
On the 4-Hour Chart, Bitcoin is testing the ascending triangle trendline on the downside. However, it is still within the borders of the triangle. A break-out towards positive or negative, both is possible. A break above $8350 would be strongly bullish.
The RSI on the 4-Hour Chart is towards the over-sold region at 41. However, the price has moved below the 50-Day moving average which can be a bearish signal. The MACD is also diverging on the towards the downside.
On a daily scale, the RSI is has moved in the neutral zone between over-bought and the over-sold region at 61. Nevertheless, the MACD seems to be converging after the bullish move cooled down, which might be a bearish signal.
On a weekly scale, the RSI is in the over-bought region above 70. The MACD is at 11.9, which is still diverging, hence seems bullish. On the weekly chart, the 100-Day Moving Average which Bitcoin [BTC[ could test on the downside is at $6637.
Where do you think Bitcoin [BTC] will break, towards a correction or the bulls? Please share your analysis with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com