In Could, Bitcoin (BTC) accomplished its second-worst month-to-month shut in historical past.
It’s at the moment buying and selling inside a impartial short-term sample and has reached a confluence of resistance ranges.
Bitcoin month-to-month shut
The month of Could was bearish for BTC, recording a lack of 35.59%. This was the second-highest month-to-month lower ever recorded, solely trailing that of November 2018, when the worth decreased by 37%.
Technical indicators present combined readings.
Within the two earlier bull cycles, the RSI made two tops within the overbought territory previous to the tip of the bull run. Within the present part, it has solely made one prime.
Nonetheless, an RSI cross beneath 70 marked an finish to the bull cycle in each 2013 and 2017 (pink icons). At present, the month-to-month RSI has simply crossed beneath 70.
Due to this fact, a take a look at decrease time-frames is required so as to look at the path of the longer term development.
BTC continues ascent
The day by day time-frame supplies a bullish outlook.
The RSI has accomplished a failure swing bottom. Moreover, it has generated a triple bullish divergence. The divergence trendline remains to be intact (blue line). Furthermore, the MACD is growing after giving a bullish reversal sign. Lastly, the Stochastic oscillator could be very shut to creating a bullish cross.
Due to this fact, readings within the day by day time frame are bullish.
The 2-hour chart exhibits that BTC is buying and selling inside a symmetrical triangle. That is usually thought-about a impartial sample.
If the motion is a part of wave four, then it’s doubtless that the worth has reached a prime close to $38,000. That is the 0.618 Fib retracement resistance degree, an anticipated degree for wave E (black) to come back to an finish.
As an alternative, a breakout from the triangle would go a great distance in suggesting that BTC has accomplished its correction as an alternative of the motion being a part of wave 4.
For a extra detailed take a look at wave counts, click here.