NewsletterBitcoin Price Analysis: Multiple Resistances Put BTC Price Under 10% Downside Risk
Bitcoin Price Analysis: On May 8th, the Bitcoin price gave a bearish breakdown from the support trendline of a symmetrical triangle pattern. This pattern created a consolidation phase for over three weeks and its end meeting on a bearish note intensifies the underlying selling momentum in the market. Here’s how long the BTC price is threatened to correct under the influence of this pattern.
Key Points:
- Bitcoin Fear & Greed Index plunged to 52% reflecting fear sentiment among traders
- The $25000 support stands as a crucial accumulation phase for market participants.
- The intraday trading volume in Bitcoin is $15.3 Billion, indicating a 5.43% loss.
Source-Tradingview
In theory, the potential target for short-sellers when the asset price breached the support trendline is the same price distance present between the largest swing high within the pattern shot from the breakdown points.
Thus, under ideal conditions, the Bitcoin price is poised for a 13.5% downfall to hit the $24600 mark. However, the potential downfall may face significant support at a 4.2% down level at $27000 or a 10% down level at $25200.
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On a contrary note, the Bitcoin price is 2% on intraday and currently trades at $28242. This sudden rise is likely associated with the lower-than-expected annual U.S. CPI data for April 2023.
Thus, the price currently retests the breached support trendline to check price sustainability after the breakdown. If the sellers manage to hold below the flipped trendline, Bitcoin is likely to hit the aforementioned targets.
However, on the upside, the buyers need to breach the triangle’s pattern both support and resistance trendlines retake trend control
Technical Indicator
Exponential Moving Average: The 20-day EMA acts as dynamic resistance undermining the efforts of buyers to reach a higher level.
Relative Strength Index: The RSI slope wavering below the midline reflects the sellers are having a dominant hand
Bitcoin Price Intraday Levels
- Spot rate: $28178
- Trend: Bullish
- Volatility: Medium
- Resistance levels- $31200 and $34600
- Support levels- $27000 and $25000
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