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(BitMain’s Main Competitor is Planning for a $1 billion IPO) Bitcoin (BTC) Technical Analysis
Regardless of the slow price action and dip in prices, Bitcoin is still king of cryptocurrencies and many altcoins anchor their moves on it. While we remain hopeful of future recoveries, it is likely that the past few days’ price appreciation is but short coverings. Notice that there is a clear failure to march past $9,000 since volumes are low and half below March 11 bear spike. I recommend shorts in lower time frames with targets at $6,800 in the short term.From the NewsIn less than five months, traders all over the world shall gain access to a crypto trading app backed by a traditional exchange, If we were to simplify, then we would say Bitcoin is moving within a $6,000 range defined by February 2018 high and low. Now, after periods of consolidation between those two highs, what stands out for me is the week ending February 4 candlestick which asserts the bear trend and week ending April 1 candlestick confirming this assertion.So, with this in mind and the fact that the general trend is bearish, selling on resistances or retests would be akin to aligning trades with the trend. From this technical development, our first level of support is at $7,800. Any break below that means our $6,000 target is likely to be hit. This would be case especially if there are high volumes accompanying a consolidation bear break out.Daily ChartBitcoin Daily Chart by Trading ViewSo, like the weekly chart, Bitcoin prices are still trading inside a range but with a bearish skew. See those lower lows and most importantly the reaction from $6,000 in line with the current trend? That is important in our analysis and what is drawing my attention is May 11 candlestick.Trade volumes are high relative to previous days and there is a mid-range push below $10,000-a region of minor support. Follow through bull candlesticks have been short on volumes. On May 15 we saw relatively high volumes confirming the bear pin bar at $9,000.Aggressive traders can short now while aiming for $7,800 and $6,600. On the other hand conservatives can stay out of this trade and watch till prices are out of this consolidation.
Author: Dalmas Ngetich
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