The long-term price indicator for Bitcoin is now bearish. This is especially significant because it hasn’t happened in four years and indicates that price gains will be impeded long term.
Bitcoin Price Analysis
Irrespective of the price rally late last month, Bitcoin’s price still fell by 19% throughout May. This is the first time the cryptocurrency is pushing a 5-month moving average since 2014. There is a bearish MA crossover that validates the suspicious that the long-term market ended and more losses are on the way.
From the monthly stats, BTC fell lower than $7,698 which is about 61.8% Fib retracement level from last year’s $162 low to $19,891 high. This indicates a bearish technical setup. However, there is a bullish wave in the 4-hour chart which indicates continuous short-term gains.
From the monthly chart, Bitcoin may drop to $6,000 which is the immediate support level. After that, it may decline towards $4,384.
After dropping by 19%, Bitcoin pushed the 10-month MA above the 5-month MA. This means that the bears are running out of steam for the short-term. A corrective rally needs to start before the bearish effect is felt. The price may get to $7,800 short term.
BTC created a higher low bullish pattern today as it recovered from the $7,414 low of yesterday. The 50 candle moving average has shown bearish bias, and the relative strength index is rising above the bullish territory.
When compared to the backdrop on Tuesday, the price actions indicates a rally to $7,818. BTC may rise to $7,818 short term a break would open the doors to rise to $8,310. However, only a break past $9,990 will indicate a bullish crossover and a long-term correction rally.
The next few sessions of trading will determine whether the price of Bitcoin will recover short term or not.