Another pullback cost Bitcoin heavily as it fell $9,127, at the time of writing. While no frenetic price movement of the world’s largest cryptocurrency was noted for the better part of May and June, there was an anticipation of a breakout. However, bearish momentum appeared to dominate the BTC market.
Bitcoin [BTC] Daily Chart:
Source: BTC/USD on TradingVew
Bitcoin appeared to be heading in an upward direction forming an ascending parallel channel with the price candles being confined between the two trendlines. The pattern coupled with the VPVR indicated a period of consolidation in the current price range below $9,700. This signaled a potential bearish breakout before the final week of June.
Further validating the presence of bearishness in the BTC market was the daily moving averages. Following the latest dip, the Bitcoin price candles fell below the 50 DMA [Pink]. The 100 DMA [Blue] continued to hover below the 200 DMA [Purple] following a bearish crossover and hinted at a rising gauge indicating a market downturn in the making.
Source: BTC/USD on TradingView
The RSI, closely mimicking Bitcoin’s price movements, was also below the 50-median neutral line depicting a sentiment of increasing sell pressure among the investors in the coin market. Notably, this level was not seen since the 15th of April.
The coin could potentially continue to be in a consolidation phase before a bearish breakout that was expected to materialize before 20th April. If the bearish momentum overpowers, the coin could potentially retrace its steps close to the 100 DMA at $7,989. Other support points as depicted by the VPVR stood untested at $6660.1 and $5391.
The 50 DMA appeared to prevent an upward price action. In addition, the coin has also been severely resisted at level $9797 as further bearish pressure could drive the coin to witness valuations unseen since the price crash of Black Thursday.