Bitcoin Is Forming a Bearish Double Top Pattern, a Downtrend Is Likely

May 18, 2020 at 11:08 // News
Coin Idol
Bitcoin Bulls have consistently made attempts to retest the $10,000 resistance

Bitcoin Bulls have consistently made attempts to retest the $10,000 resistance. This becomes possible because buyers hold prices above the major support at $9,200.

Analysts are of the opinion that several retests at the $10,000 resistance will weaken the resistance zone. This will be an added advantage to the bulls as buyers continue to retest the resistance. At the time of writing, Bitcoin is trading above $9,700.

The reason the bulls fail to break the $10,000 benchmark is that it is the major resistance. On the daily chart, the bulls visited the resistance zone on three occasions without breaching it. BTC is still having a chance to retest the resistance today. On the other hand, a bearish price action pattern is forming, this invariably will bring a downward correction of the King coin.

Bitcoin indicator reading 

The king coin is at level 64 of the daily Relative Strength Index. It indicates that buyers are having the upper hand and BTC is in uptrend zone. It is also above the centerline 50. The 12-day EMA acts like support above $9,000 support level.

BTC-CoinIdol (2).png

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7, 000, $6, 000, $5,000

What is the next direction for BTC/USD?

Bitcoin is experiencing repeated retests at the $10,000 resistance because buyers have a stronghold above the $9,200 support. Bitcoin risks a downward move, if this major support cracks. A drop to $8,800 is likely and subsequent falls to $8,500 and $8,200 are unavoidable.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

Show comments(0 comments)