Bitcoin (BTC) Price Analysis – May 13
The positive move is still intact for Bitcoin as the surge in volatility further placed price on a higher level. For this reason, BTC touched $8000 a few hours ago as it continues to gain dominance in the crypto space; estimated at 60.1%.
BTC/USD Long-term Trend: Bullish (1D chart)
Resistance levels: $8200, $8600
Support levels: $7500, $7200
For the past three months, Bitcoin carved a bullish wedge which has acted as a support and resistance line for the price actions. Last Saturday, the price broke above the wedge after trading within the trend lines. Ever since, the market has remained significantly above the wedge.
Today, BTC hit $8000 after a surge in volatility which has been the cryptocurrency pattern for the past six weeks of trading. For the next bullish move, we can expect the price to touch $8200 and $8600 resistance levels. On the downside, the next bearish move is likely at $7500 and $7200 respectively.
On the daily RSI, BTC trading has reached an extremely overbought area. We may expect a drop at any moment. Meanwhile, the daily Stochastic RSI has already signaled a potential drop which may be around the corner.
BTC/USD Medium -term Trend: Bullish (4H Chart)
The month of May has revealed a positive move for Bitcoin as the price continues to fly higher after surpassing the April $5600 high. As of today, BTC has gained about 45% in just thirteen days of trading. This shows a bullish dominance in the market. The bigger picture is revealed on the 4-hours RSI.
Following the rising wedge pattern, BTC has touched $8000 level, testing the upper channel. There’s a need for a slight drop before rally continues. Close-By support is located at $7600 level. At the same time, a bullish continuation may create a new price at around $8200 – $8500 area.
However, the 4-hours Stochastic RSI is revealed in an upward movement; indicating that the buyers are in play.
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