The bulls enjoyed a short-lived rally after the market tried to break into the trading range.
If Bitcoin were to break back into trading range, the price would have been in an evaluation period and unable to maintain any support within the trading range. This would have subsequently led to a downward trend.
Bitcoin Price Analysis for May 18
The trading market made a weak rally and formed an LPSY (Last point if supply) beneath the trading range after it established a major sign of weakness. The last point of supply is the trading point where demand reduces and the maket is overwhelmed with supply. The TR was rejected and the maket was able to establish a new low. Unfortunately, there was fairly low volume. The volume and price action are shaping our a falling wedge reversal pattern.
It BTC manages to break out of the falling wedge reversal pattern, it will move upward by $1,000 or more. This means the price will test the $9,000 range again. If it fails to gain the required momentum to push forward, the price of BTC will test the 61% Fib retractment vaules. Testing the macro 61% vaule will lead to another evaluation as traders wait to see the reaction of the market to the marco support.
The market enjoyed a short lived rally that was followed by an LPSY of $8,800 after which the price has continued to make new lows. Although the market is currently pushing new lows, it is not diminishing in vaule.
The price action is forming a falling wedge that can break the price upward to the $9,000 range.
Investing and trading in Bitcoin and other cryptocurrencies is speculative and risky. While price analysis is meant to inform you, always remember that the market is often unpredictable. This is why investors prefer to diversify their portfolios rather than depend solely on one coin.