Bitcoin underwent a bearish pattern that pushed its price from $9,216 below $9,000 for a brief moment. As the coin moves sideways on support at $9,016, the tussle between the bears and bulls continues. At press time, the market cap of bitcoin exceeded $165 billion and has a $12.5 billion 24-hour trading volume.
Bitcoin One-Hour Chart
With price breaching the rising wedge pattern, next levels of support include $8,900 and $8,808; the former is extremely important. The $8,900 support, if breached, would enable the continuation of the lower lows. The closing of the price below $8,900 would be the third lower low in a month.
Supporting this would be the RSI, which has done a 180 as it neared the 50-level. As the price hovers below 50-DMA [yellow] the final destination would be 200-DMA [purple] $8,379, assuming the bearish trend continues.
Bitcoin Weekly Chart
On the weekly chart, Bitcoin has seen 3 consecutive lower closes, which signifies a bearish downtrend. The last time this happened was before the Black Thursday drop. Furthermore, the price is stuck between the 5 weekly moving average and the 21 WMA. RSI on the weekly time frame showed a descent towards the neutral zone since mid-April. For RSI, the 46.20 represents serious support that has not been breached since early March.
An important takeaway from the weekly chart is that every time the price sees 3 weekly consecutive lower closes, there is a massive price drop on the third candle or the subsequent candle. The 21 WMA and the 200 DMA coincide at price $8,380, which makes it strong support and a good place for the price to bounce and start a rally.
As mentioned in the previous article, the bull run is just around the corner, however, the price’s tussle with the $10,500 level has made it impossible so far. Hence, a bounce from $8,300 would gather enough momentum for the price to push through this level and start the bull run.