Bitcoin (BTC) is currently trading at roughly £24,000. It produced its eighth straight bearish weekly candle between May 16 and 22. This is a first in the history of cryptocurrencies.
Only red candles have emerged on bitcoin’s weekly chart since it reached a local high of £38,600 on March 28. Thursday 12 May saw the price fall to a low of £20,300 before rising to its present level. This is a 47% decrease at the extremes.
BTC has also achieved the 0.618 Fib retracement from the COVID-19 fall in March 2020, in addition to long-term support at £23,000. The 200-week moving average at £17,600 and the 0.786 Fib retracement at £14,400 are the next objectives if this level fails to hold as support.
On the weekly chart, the technical indications are bearish. The RSI is currently around 34.50, which is similar to the March 2020 level of 33.
The MACD is currently generating its sixth red momentum bar. In comparison to the second part of January, however, a bullish divergence is forming. Then, the MACD momentum was downward, and bitcoin was hunting for support near £29,200, the 0.5 Fib retracement line.
Interestingly, the RSI on the monthly chart has established a long-term buy zone in the 44-48 range. The monthly RSI has only been there twice, in January 2015 and January 2019. In March 2020, it also bounced off this area once.
The monthly RSI is currently at 47.30, narrowly approaching the green zone. This was the commencement of accumulation near the absolute lows in previous bear markets. If the pattern repeats, the market will be in for a multi-month accumulation period, with the BTC price bottom being near or already hit.
According to a weekly chart of bitcoin with Heikin-Ashi candles, the BTC price has been following a bullish megaphone pattern since the beginning of 2021. Similar to the expanding wedge pattern, its shoulders are widening with time.
There appear to be two support levels for the fourth wave’s bottom, which could be nearing completion. The first one is £22,800, while the second one is around £20,000. This means BTC will go next towards resistance from £51,600 and £55,200, the historical all-time highs. It’s important mentioning the pivot line’s significance at £33,600.
On the four-hour chart, there is a continuous breakout from a symmetrical triangular formation. The pattern has been there since the lows of May 12th, with a technical goal of around £28,000. The CME gap from May 6 to 9 coincides with this area. The bearish target is approximately £19,600 if there is a fakeout and there is a breakdown from the pattern.