Bitcoin price analysis on June 7, 2019

According to the latest technical analysis, the price of Bitcoin (BTC) has dropped to the bottom level after 3 weeks on February 26, and at the same time removed all the accumulated value this year.

The largest coin in the market has dropped to $ 9,095 and has hit the lowest level since February 4.

With this new bottom, Bitcoin removed 38% of the increased value from $ 6,850 to $ 10,500 in the six weeks prior to the February 13 milestone.

A worrying sign is that the selling momentum is getting stronger in the past 24 hours.

Bitcoin dropped below $ 9,400 on Tuesday, confirming the bearish pattern on many technical charts. In addition, sell orders have successfully broken out of the 50-day MA for the first time since January 3.

At the time of writing, Bitcoin is priced at $ 9,140.

12-hour candle chart

Bitcoin 12 hour candle chart, reference data from Bitstamp
Bitcoin 12 hour candle chart, reference data from Bitstamp

The head and shoulders pattern that appears on the 12-hour chart shows a trend shift from up to down while opening the possibility of plunging below the $ 8,300 threshold.

The overall picture will still be positive if the price can break above the old peak of $ 10,028 on Monday.

Day candle chart

Bitcoin daily candlestick chart, reference data from Bitstamp
Bitcoin daily candlestick chart, reference data from Bitstamp

The MACD, which measures the direction and strength of the trend, has fallen to its lowest level since November 26.

RSI also shows downward trend when it is below the level of 50. Moreover, the coin is still below the support of $ 9,188.

After all, it is highly likely that Bitcoin will not be able to attack resistance levels. If it fails to hold support of $ 9,075 (February 4 bottom), the market could form a deeper bottom and plunge sharply.

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Well-known analyst Josh Rager said that the failure of Bitcoin to surpass $ 9,300 is a premise for the coin to plunge to $ 8,700 and $ 8,600.

Besides, a slight rebound can cause the market to recover deeper, especially when the oversold situation is happening.

Hourly candle graph

Bitcoin hourly candle graph, reference data from Bitstamp
Bitcoin hourly candle graph, reference data from Bitstamp

The MACD on the chart is now forming a higher high, as opposed to a lower low on the price chart. This shows that the selling momentum is showing signs of cooling off.

Accordingly, it is likely that there will be a correction to USD 9,230 and even USD 9,400 before the market officially declines.

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  • The daily and 12-hour candlestick chart of Bitcoin suggests that the coin is unlikely to break out of resistance in the near future.
  • A fall below $ 9,074 (February 4 bottom) could result in a fall to the support zone of $ 8,700 to $ 8,600 and even $ 8,300 (if a head and shoulders pattern is formed).
  • A correction to resistance at $ 9,230 and $ 9,400 can occur before the market drops below $ 9,000. This is because the candlestick chart now shows selling momentum showing signs of cooling off.
  • If the candle closes above Monday's peak of $ 10,028, the market is likely to witness another bull run.

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According to Coin68 / CoinDesk
Recompiled ToiYeuBitcoin

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