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Bitcoin’s Repeated Failures to Pass $8.3K Raise Risk of Price Pullback

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  • Bitcoin risks a price pullback in the short-term, given the signs of bullish exhaustion around $8,300.
  • A UTC close below $7,581 would validate a bearish “hammer candle” created on Monday and open the doors for a drop to the 30-day moving average, currently at $6,333.
  • The case for a pullback would weaken if BTC settles above $$8,200 today, invalidating the hammer candle.
  • Both the daily and 4-hour charts also indicate scope for a price pullback.

Bitcoin (BTC) has failed three times in seven days to find acceptance above $8,300, raising the risk of a notable short-term correction.

The cryptocurrency market leader jumped nearly 13 percent to a high of $8,300 on Sunday, reviving the case for a rally to $8,500 (July 2018 high), as discussed yesterday.

So far, however, the follow-through has been bearish. BTC is currently flatlined above $7,900 on Bitstamp, having hit lows below $7,600 in the early U.S. trading hours yesterday.

Notably, the pullback seen in the last 36 hours marks BTC’s third failure in the last seven days to capitalize on a rally to $8,300.

Prices rose to a high of $8,335 on May 14, only to register a UTC close at $7,986. On similar lines, BTC faded the spike to $8,390 on May 16 and closed the day in the red at $7,880.

The triple rejection comes after a sharp rally from lows near $5,100 seen at the end of April and could be considered a sign of buyer exhaustion. As a result, a fall back to $7,200–$7,000 could be seen in the next day or two.

Daily chart

BTC created a bearish “hanging man” or a hammer candle on Monday, which occurs when the price closes in the red, despite a “buy the dip” mentality. The cryptocurrency recovered from the intraday low of $7,581 yesterday, but closed 2.3 percent lower on the day at $8,005.

Put simply, the bears are beginning to test the bulls’ strength and the market may be topping out for the short-term.

A temporary bullish-to-bearish trend change would be confirmed if the price closes today below $7,581 (candle low). That looks likely, given the repeated rejections at $8,300 in the last seven days.

A close below $7,581 would open the doors for a deeper pullback to the historically strong 30-day moving average (MA) support, currently at $6,333.

The bearish hammer would be invalidated if prices find acceptance above $8,200 in the next 24 hours. In that case, BTC may rise to $8,500 as suggested by the bullish longer-duration charts.

4-hour chart

As seen above, BTC picked up a strong bid near $7,300 and jumped to $8,000 in the Asian trading hours on May 19.

With the price rally, both the relative strength index and Chaikin money flow (CMF) invalidated bearish divergences by moving above their respective falling trendlines.

A failed bearish indicator divergence is often followed by a big move to the higher side. As mentioned, though, BTC only managed to retest $8,300 before falling back below $8,000, indicating buyers are exhausted after engineering a $3,000 rally in just two weeks.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

 

source:coindesk

 

Bitcoin

Bitcoin (BTC) Price Accelerating Losses Below $8K, $7.5K Very Likely

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  • Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.
  • The price is declining again and it could gain momentum below the $8,000 support.
  • There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.

Source:newsbtc

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Bitcoin

Bitcoin (BTC) Price Accelerating Losses Below $8K, $7.5K Very Likely

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  • Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.
  • The price is declining again and it could gain momentum below the $8,000 support.
  • There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.

Technical indicators:

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Bitcoin

Bitcoin And Crypto Market Cap Facing Hurdles: BCH, Litecoin, TRX, XLM Analysis

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  • The total crypto market cap corrected a few points, but it faced a strong resistance near $215.0B.
  • Bitcoin price is also correcting higher, but it is likely to struggle to clear the $8,200 resistance.
  • Litecoin (LTC) price is now facing resistance near the $55.50 and $56.50 levels.
  • BCH price is holding the main $215 support area and it is currently rebounding.
  • Tron (TRX) price is climbing higher and it is now placed nicely above the $0.0150 level.
  • Stellar (XLM) price is up more than 2% and it is moving towards the $0.0650 resistance.

The crypto market cap and bitcoin (BTC) are facing many hurdles on the upside. Ethereum (ETH), litecoin (LTC), ripple, BCH, tron (TRX), stellar (XLM) and other altcoins could struggle to climb higher.

Bitcoin Cash Price Analysis

BCH price corrected lower recently and tested the $215 support area against the US Dollar. The price is currently moving higher and is trading near the $220 level. On the upside, there is a major resistance near the $230 level, above which the price could recover towards the $240 level in the near term.

On the downside, if there is a bearish break below the $215 support, the price could decline towards the $205 and $200 support levels.

Litecoin (LTC), Tron (TRX) and Stellar (XLM) Price Analysis

Litecoin price managed to stay above the $51.50 and $50.00 support levels. LTC price is currently recovering and is trading above the $54.00 level. However, there are a few key hurdles near the $55.50 and $56.00 levels, above which the price could revisit the main $60.00 resistance area.

Tron price declined recently and tested the $0.0145 support area. TRX price remained well bid and recently started a nice upward move above the $0.0150 resistance area. The price is up more than 3% and it could continue to rise towards the $0.0155 resistance level in the near term.

Stellar price also declined recently and tested the $0.0600 support area. XLM price is now climbing higher and is trading above the $0.0625 resistance area. However, there is a major resistance near $0.0650, above which the price could continue to rise towards $0.0682 and $0.0695.

Bitcoin Crypto Market Altcoins ETH XRP EOS BNB TRX ADA LTC

Looking at the total cryptocurrency market cap 4-hours chart, there was a decent recovery from the $205.0B support area. However, the market cap struggled to clear a key resistance near the $215.0B level and the 100 SMA. Moreover, there is a connecting bearish trend line forming with resistance near $215.0B. Therefore, a clear break above the $215.0B resistance is needed for a nice rally in bitcoin, Ethereum, EOS, litecoin, ripple, XLM, BCH, BNB, TRX, ADA, XMR, and other altcoins in the coming sessions.

Source:newsbtc

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