Bitcoin experienced a bearish trend that pushed its price from $9,216 to below $9,000 for a brief moment. As the coin moves sideways on a $9,016 support, the battle between bears and bulls continues. At the time of going to press, Bitcoin’s market capitalization exceeded $165 billion and 24-hour trading volume was $12.5 billion.
1-Hour Bitcoin Chart
With the break in the upward price trend, the next support levels include $8,900 and $8,808; the former is extremely important. The former is extremely important. The $8,900 support, if crossed, would maintain the lower levels. Closing the price below $8,900 would be the third lowest in a month.
The RSI, which was a 180 near the 50 level, is a good support. When the price is below 50-DMA [yellow], the final destination would be 200-DMA [purple] $8,379, assuming the downtrend continues.
Bitcoin Weekly Chart
On the weekly chart, Bitcoin has seen 3 consecutive downward closures, which means a downward trend. The last time this occurred was before Black Thursday’s drop. In addition, the price is stuck between the 5 weekly moving averages and the 21 WMA. The RSI for the weekly period has been showing a descent towards the neutral zone since mid-April. For the RSI, the 46.20 represents serious support that has not been broken since early March.
An important point to remember from the weekly chart is that every time the price sees 3 consecutive weekly closures in a row, there is a massive drop in the price of the third or next candle. The 21 WMA and the 200 DMA coincide at a price of $8,380, making it a solid support and a good place for the price to bounce back and start a rally.
As mentioned in the previous article, the price increase is close, but the struggle with the $10,500 level has made it impossible so far. Therefore, a rebound from $8,300 would be enough to push the price above that level and start the rise.