A $ 10,000 Bull Trap in Bitcoin? The Next Move
The price movements for Bitcoin ( BTC ) last week looked equal between bears and bulls. There was no major change. So what is waiting for Bitcoin nowadays when we are at the end of May?
Bitcoin closed this bear with bull look
From monthly data, it is seen that the value of Bitcoin grew by 25% in May. While it’s always a good thing to see this, it’s not something that has been thrilling Bitcoin holders, the HODLers, since the March 12 collapse.
However, the one-month candle rises above the level of .382 fib retracement (Fibonacci retracement); A move towards .618 is an exciting move as it will point to $ 13,700. However, it should not be rushed and the $ 11,800 level should be followed first. It should also be noted that there is always a risk of downward movement.According to Wareing, if there is a drop in June; Purchase orders can be placed at levels between $ 7,400 and $ 7,600.
Monthly MACD marks bullish
Monthly Moving Average Divergence Convergence (MACD) indicator is on the rise. This shows that Bitcoin has gained an upward momentum, and it is seen that it served as an important buying signal for investors.
This was also reflected in the weekly MACD, which showed an increase at the beginning of May. So even though things seem stagnant right now; BTC looks strong in other time frames.However, for faster price action expectations – we need to go further to see what might happen next week.
Bitcoin not only shows its uptrend on a weekly and monthly basis, but it seems that the daily MACD is also ready to move up. But this almost looks like a bull trap. Because it is a dream to present these conditions in the special indicator in question.In addition, the price trend of BTC is on the rise and the indicator is on the downtrend, so the cryptocurrency still appears in the bear market. This situation definitely does not represent an increase. He says it’s time to retreat.
Trend channel moves in decreasing direction
Looking at the daily movement, we can see that Bitcoin fell below the previous uptrend last week. It is also understood that the price has continued to go back to the previous support level since then. So it becomes difficult to determine which way the price wants to go.
This led to the emergence of a new bearish channel in the charts, which sets the $ 9,700 resistance, the $ 8,700 medium level and the $ 7,400 support level.Although a retreat is inevitable after such a large increase in price over the past eight weeks, this may be short-lived due to the increasing momentum in other time frames.
In the daily chart, along with the Fibonacci retracement method, the levels that BTC can go in case of retreating to the midpoint of the drop channel are revealed.
Support seems to be $ 8,613, and key levels for leap are $ 9,313 (.382) and $ 9,046 (.618).If the price drops below $ 8,613; only then $ 7,400 could be a realistic support level.
From the perspective of the bull scenario, breaking $ 9,800 could raise Bitcoin to $ 11,000 and then to $ 13,800.