- Bitcoin price has broken its crucial support after receiving resistance along its previous top
- Bitcoin price volumes are dominated by sellers but still low
Bitcoin price gave a triangle breakdown by making a higher high; the breakdown has low volumes but dominated by sellers, indicating profit booking in the coin. The price has breached the R-1 levels and will find its next pivot at $55,000 and $50,000. The market cap and 24-hour volumes are $1,067,351,627,819 and $55,885,671,929 respectively.
Negative Divergence In RSI Of Bitcoin Price
Left Image: Price analysis shows that the Bitcoin price faced a loss of momentum after making a bearish harami candle; however, it received support from the old crucial support. The coin is facing resistance at 78.6% retracement, i.e., $57,666. The crucial supports of Fibonacci levels are $54,500, $52,300, and $50000. While resistance is expected at $62,000.
Right Image: The price is headed back towards the 50-EMA, which has been retested for thrice from the past three dips. The 50-EMA and 200-EMA are likely to support the prices at $50,000 and $32,000.
The Bollinger bands are sideways, which shows constant volatility, which is likely to impact the coin’s momentum. The median supports the coin today at $54,800; if the median is breached, it may cause a triangle breakdown and bring in a price reversal. The upper band and lower band are at $62,800 and $46,700.
RSI has made a negative divergence by making a lower top while making a higher top. Such formation leads to reversals often. The RSI is 58; a breach of 50 levels will make the coin tumble.
MACD(8,21,5) has also made a negative divergence by making a lower top while the price made a higher high. Both momentum oscillators indicate possible reversals.
Bitcoin price has shown multiple reversals by forming a bearish harami candle followed by negative divergence in momentum oscillators. Currently, the price is receiving support from the Bollinger band’s median; a breach may bring a strong reversal.
Support: $54,500, $52,250 and $50,000
Resistance: $57,666 and $61,700
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