Bitcoin (BTC) Price Analysis – May 31
Bitcoin Plummets To 8K After A Massive Drop, Is That A Bearish Sign?
Published on Friday May 31, 2019
BTC/USD Medium-term Trend: Bearish
Supply levels: $8800, $8600
Demand levels: $7600, $7200
Following the positive move that channeled the trend towards the $9000 on Bitstamp, Bitcoin has attempted a break below the channel yesterday, which might lead to a bearish scenario for the market. The sharp drop was revealed on the 4-hours RSI, now below the 50 level – a medium-term bearish signal.
If the market falls significantly below the channel, the closest support for the sellers lies at the $7600. The $7200 and $6800 may further hold selling pressures. On the upsides, the nearest resistance lies at $8800 and $9000. As suggested on the 4-hours Stochastic RSI, the BTC market is now oversold. A potential buy pressure may push the price back around the $8800 level.
BTC/USD Short-term Trend: Bearish
Yesterday, Bitcoin broke out from a channel, touching the $8000 before bouncing up near the break level of $8400. Now, the largest cryptocurrency is trading around the $8250 level the next lower low is likely to retouch the $8000 before the next move plays out. At the moment, the BTC market is in a bearish trend.
Looking at the hourly Stochastic RSI, the bullish momentum is nearly exhausted as the market closes the overbought area, amounting to a potential sell which is about to play out in the market. The hourly RSI currently lies at the 40 level, indicating a bearish play. If the RSI manages to cross above the 50 level, we may resume bullish towards the $8600 and $8800 supply.