Is Bitcoin bullish or bearish?: Momentum to $10k, or rejection to $7k

10 Jun, 2019
by Lourens Pepler
Price Analysis
Is Bitcoin bullish or bearish?: Momentum to $10k, or rejection to $7k

On June 7th we mentioned that Bitcoin was outside of 4-hour momentum and that we expected it to fall back below it, as soon as buying pressure runs out. That afternoon Bitcoin extended to $8130, before falling back down below the RSI trend line. Is Bitcoin now bearish, or can we spot any signs for more upside? This is our BTC analysis for 10 June 2019.

Highlights:

- Back below 4-hour momentum

- Overall bearish?

- $BTC Needs momentum for a continuation

Starting off on a 4-hour chart once again, we are able to see that BTC is now trading within this downward trend on RSI, indicating that overall selling pressure is increasing. As we do not yet have any signs of divergence, we can not yet assume that this dip for BTC is over. RSI is now also nearing resistance on this downwards trend, telling us that price might still rise a bit as momentum makes it way to the trend line.

Looking at price we are able to draw a downward trend from the 13th of May, which enables us to see the occasions where BTC presented selling opportunities. Currently being below this trend, is an indication that price will attempt to reach the line again before continuing on with the downtrend.

BTC/USD chart provided by Tradingview

Over at the 15 min chart, we can see that BTC is trading within this downwards channel, and that is currently within the upper half of the channel, indicating that it will attempt to reach the upper resistance line, near $7800. We can also see that $7800 acted as support during this downtrend, which we now turn into resistance.

On RSI we are also able to spot an uptrend forming, which will help BTC reach that upper channel line, as momentum pushes higher. This smaller time frame momentum pushing higher will also cause the 4-hour to push higher, reaching our higher timeframe downtrend on RSI.

BTC/USD chart provided by Tradingview

BTC might stick to this middle trend line we have on the channel for a few hours before it makes one more push towards $7800. If momentum can get behind us and push through the upper trend line within this channel, then its possible for BTC to continue on towards $10k. Otherwise, if BTC hits resistance at $7800 and gets denied, then it's very likely we will continue down towards $7000.

Do you think BTC has more downside ahead, or will momentum turn and get behind us for a push towards $10k? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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