Bitcoin Technical Analysis May 29, 2018

The crypto market has been bearish for the last few weeks. All altcoins have been pulled by bitcoin. At the time of writing, bitcoin is traded at the level of $7,071. Within 24 hours, bitcoin was down four (4) percent in the process sliding to $6,800, of which it is our support line – Bitcoin Technical Analysis May 29, 2018.

Bitcoin Technical Analysis May 29, 2018

Disclaimer: This article should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.

Bitcoin Technical Analysis May 29, 2018

Bitcoin entered a parabolic advance in the Spring of 2017.  At one point, the price was doubling in value every 30 to 60 days and it reached the all-time high close to $20,000 in December last year. Very often, parabolic advances are quickly followed by a complete price collapse as what we have observed today.

It is always difficult to predict the future price of bitcoin as this crypto asset is relatively new and there isn’t much historical data for a good forecast. However, if we look closely at the daily chart, The chart below shows how BTC has been following the bullish pennant pattern ever since the beginning of 2018. Early February and April lowed at $5,900 and $6,500 respectively.

The Relative Strength Index (RSI) indicates that bitcoin is oversold (below 30) in the daily chart. Moving forward, BTC/USD is gunning for a strong resistance level, which is seen at $7,100, a push through would mean the bulls have managed to be back above a long-running ascending trend line.

Bitcoin Technical Analysis May 29, 2018

Today, bitcoin managed to recover to $7,450. However it is still too early to conclude it is the start of the bull market or it is just another bull trap.

The downward trend of bitcoin throughout May has been strong, and it will require a significant bounce from a proper support level for BTC to eye previous levels at $10,000 and $12,000.

The entire cryptocurrency market remains under pressure and while we fully suspect that both investors/traders will be treated to some relief in the days ahead. It is believed that a move up to $9,000-9,500 will be possible, ahead of the psychological $10,000 mark by mid-June 2018.

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