Bitcoin Price Analysis: BTC Breaks Beneath Symmetrical Triangle – Is $30K Incoming?


Bitcoin fell by a sharp 10% today as it lost over $5000 over the past 48 hours. The primary cryptocurrency was trading inside a symmetrical triangle pattern since the market capitulation took place in mid-May when BTC fell by 50% from a high of $59,600 to a low of $30,000 in just nine days.

Since then, BTC traded inside the consolidation phase for a total of eighteen days until it broke the lower boundary of the triangle yesterday. This can be clearly seen on the following daily chart. BTC then closed yesterday’s candle at $33,520 (bearish close below the triangle’s boundary around $35k) and continued lower today to reach $32,190 (as of now).

The decline also caused BTC to spike beneath crucial support is at $32.5K (as of writing these lines BTC rebounded). This level provided both strong support and resistance during January. A daily close beneath it is likely to drive BTC lower into the $30,000 region next.

One critical indicator to note is the 4-hour RSI which is currently at extremely oversold levels that have not been seen since before the market capitulation in May. This could suggest a possible temporary correction or relief following the recent bloodbath. However, the market is not showing any signs of reversal so far, so we can expect the bearish action to continue.

The key level is $30K, which is also May’s lowest recorded on May 19.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $32.5K, $31,900, $31,185, $30,000, $28,650.

Key Resistance Levels: $33,520, $34,000, $34,760, $36,000, $36,750.

Looking ahead, the first support lies at the mentioned $32.5K support. This is followed by $31,900 (short term downside 1.618 Fib Extension), $31,185 (downside 1.618 Fib Extension & late May support), $30,000, and $28,650.

On the other side, the first resistance now lies at $33,520. This is followed by $34,000, $34,760, $36,000, $36,750 (20-day MA), and $38,000.

As mentioned, the 4-hour RSI is extremely oversold. However, the daily RSI is not near oversold conditions, indicating that the sellers still have room to push BTC lower toward $30,000 before becoming exhausted.

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView.

Bitstamp BTC/USD 4-Hour Chart

btcusd-jun8-4hr
BTC/USD 4-Hour Chart. Source: TradingView.
SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



Source link

Recommended Articles

Leave a Reply

Your email address will not be published. Required fields are marked *