Bitcoin Price Analysis: Claimed The $60,000, May Halt For Breather

Bitcoin Price Seeking Hiatus, Signaled Price Action
  • Bitcoin price received resistance at $60,000, which pushed the price to $57,700(78.6% Retracement) 
  • Bitcoin Could possibly test the diagonal support somewhere at $55,000 
Tradingview

Bitcoin price has made a new top at $61,000, which was followed by a profit booking that declined the price to the immediate retracement at $57,700 i.e. 78.6% retracement; however, the price may still decline as the volumes are quite low and sellers dominate the price range; this can push the price towards $55,000 i.e.61.8% retracement. The market cap and 24-hour volume are $1,082,575,799,687 and $51,992,272,037 respectively. 

Bitcoin Price Seeking Hiatus, Signaled Price Action 

Tradingview

Left Image: The price action on the daily time frame shows that Bitcoin has made a Dark-Cloud cover candlestick pattern at R-2 pivot, which pushed the price to $57,000. Crucial support for the coin rests at R-1 at $55,000 and $45,000(P Level).

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Right Image: The price is above the 10-EMA($55,500), 20-EMA($53420), 50-EMA($47,462), and 200-EMA($$30350); which are acting as crucial supports for the price. A breach of 20-EMA may plummet the coin to $50,000 levels. 

Bollinger Bands of 10-EMA median are contracting, signaling a possible consolidation which could later turn into breakout or breakdown. The bands act as support and resistance at $48300 and $63,000. 

RSI is 62 currently; its crucial support and resistance lie at 50-levels and 80-levels; however, this time, the coin has made a negative divergence, as the price made a higher top while RSI failed to test the 80-levels resistance.

MACD(8,21,5) makes a negative divergence as the indicator failed to make a higher high while the price made a higher high. The indicator also prepares for a negative convergence, which could initiate a bear rally. 

Conclusion 

Bitcoin price received resistance at $61,000 and declined to the support at $57,500, i.e., 78.6% retracement and previous high; however, the low volumes and contracting Bollinger Band show more correction needed in the coin. The MACD and RSI are making negative divergences which often result in strong reversals. 

Support: $57,500(78.6% retracement), $55,000 (diagonal support), $50,000(psychological level) and $45,000(P pivot) 

Resistance: $61,000 (100% retracement)

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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