On May 10, the Bitcoin rate has fallen sharply and is fluctuating in the range below the resistance zone at $ 9,000. Therefore, BTC/USD should become cheaper by $ 8,000 by May 19th.
Key Points
- Supports are at $ 8,200 and $ 8,000.
- A bearish trend line with a resistance of $ 8,800 has formed on the hourly chart.
- Head and shoulders pattern with resistance at $ 8,800 indicates a continued downward trend in the medium term.
On May 8, the Bull Run ended on the Bitcoin market, as a result of which the value of the asset grew from $ 4,100 to $ 10,082 in two months. On Sunday, the cryptocurrency price hit 12.5%, breaking through the support zone at $ 9,000, which coincides with the average value of the coin for 100 hours. Bears managed to break through support around $ 8,500, and the BTC rate reached a local bottom – $ 8,267.
Now BTC/USD is trading above 23.6% Fib recorded during the dump from $ 10,082 to $ 8,267. The nearest resistance is located at around $ 8,800. If buyers do not overcome this barrier, the price of the coin will continue to fall to the nearest key support zone of $ 8,200. Judging by the schedule, the price of BTC could drop to $ 8,000 over the next seven days.
Could Bitcoin Up?
On May 11, businessman Michael Novogratz announced that the Bitcoin would reach $ 20,000 by the end of 2020. He explained his forecast by the fact that a large investor, Paul Tudor Jones, is entering into the BTC market. According to Novogratz, Jones will follow the example of other whales, which will lead to a significant increase in the level of BTC capitalization. Capital inflows are expected over the next few months.
On Monday, a halving took place on the Bitcoin blockchain. According to many analysts, halving the reward will increase the level of volatility of the BTC rate. If we draw an analogy with the previous halving (in 2014), then we can predict a three-fold drop in the value of coin during 2020.
Investors like Jones follow a simple philosophy: buy cheap, sell expensive. Therefore, it is extremely unlikely that they will purchase BTC for $ 9,000-10,000. Given the chart data and the current market situation, it becomes clear that the price of Bitcoin can rebound to a maximum of $ 9,000 and will fall in the medium term. This year, BTC is due to update at least around $ 4,000.
Technical indicators:
4 hours MACD is in the bearish trend zone.
4 hours RSI is above 40 (in the neutral area).
The main support level is $ 8,200.
The main resistance level is $ 9,000.
The nearest pivot points are $ 8,220 and $ 8,971.
Source: en.bit.news
