Despite a short rally yesterday, bitcoin (BTC) continues to be in corrective mode and dangers falling again under $9,000, chart evaluation suggests.
The cryptocurrency broke out of the bearish falling channel setup yesterday, courtesy of a bullish relative power index (RSI) divergence – indicating the pullback from the latest excessive of $9,990 had ended at $eight,980 (yesterday’s low).
The breakout additionally raised the prospects of a stronger transfer in the direction of $9,767 (April 25 excessive) and presumably even the $10,000 mark.
Nonetheless, the ascent has been reduce quick round $9,380 in the final 15 hours, as seen in the chart under.
As of writing, bitcoin is trying a break above $9,380 on Bitfinex, above which a significant resistance is seen at $9,442 – the 200-hour transferring common (MA). In the meantime, a powerful assist is seen at $9,228 (marked by a circle).
The momentum research are biased bearish. As an illustration, the 100-hour MA is trending south in favor of the bears and the 50-hour MA continues to be regularly descending (but to backside out or shed bearish bias).
In consequence, a convincing transfer above $9,442 might be a tricky process.
Additional, the short-term transferring averages in the each day chart under have rolled over in favor of the bears.
Day by day chart
The bearish crossover between the 5-day MA and the 10-day MA signifies a short-term (5 days) bullish-to-bearish pattern change. It additionally signifies the pullback from the latest excessive of $9,990 has not run its course.
- A break under $9,228 (assist on the hourly chart) would add credence to the bearish 5-day MA and 10-day MA crossover and open the doorways for a drop to $eight,980 and $eight,868 (100-day transferring common).
- A each day shut (as per UTC) under $eight,652 (April 26 low) would verify a bearish reversal.
- On the upper aspect, a each day shut (as per UTC) above the 10-day MA (presently situated at $9,452) would sign the tip of the pullback from the latest excessive of $9,990.
Arrows picture through Shutterstock