In the week from April 27th to May 4th the price is fromIt soared and created a bullish candle. While the price started the week at $ 7,700, it peaked at $ 9,640 before falling below $ 9,000 again.
Although the price reached a long-term level of resistance, he failed to break it.
Bitcoin’s weekly candle
Since its peak in December 2017, the Bitcoin price has been following a massive downward resistance line. The price reached this resistance level for the fourth time last week. The previous two times this resistance was reached were very close to relative highs, and shortly thereafter there were rapid downward moves.
Last week’s candle, however, was bullish and sweated with a higher volume than previous candles, though that volume faded compared to early March.
Bitcoin daily resistance
The daily chart shows a very strong resistance level of $ 9,200. This zone has acted as support and resistance at times, and its validity is increasing as it is the 0.786-Fib level of the entire downward movement.
The volume of bear candles was higher, which was particularly evident during the shooting star candle on April 30, which is usually a sign of a reversal.
Short-term descending triangle
In the short term, we can see that the price has been operating within a descending triangle since April 30, when the price peaked at $ 9,460. He is currently on his support line, which is $ 8,600.
Technical indicators paint a bearish picture. The hourly RSI fell below 50 for the first time since the start of the upward movement on April 23. In addition, the price has fallen below the 50-hour moving average (MA).
On April 23 there was a bullish transition between the 50 and 200 hour MAs and the price has been trading above both since then. However, it fell below the 50-hour MA yesterday and appears to be approaching the 200-hour MA at press time.
A fall in prices below the latter would likely result in the triangle breaking out to $ 7,700, where the closest support area is.
In summary, the price of BTC is trading in a descending triangle that is expected to break. If this error occurs, the price will likely reach the closest support area at $ 7,700.
If you are interested in BeInCrypto’s earlier Bitcoin analysis, click here.
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