Bitcoin momentum continues to fall: $8400 is the worst case scenario

19 Jun, 2019
by Lourens Pepler
Price Analysis
Bitcoin momentum continues to fall: $8400 is the worst case scenario

Yesterday we saw BTC attempting to fall below $9000, and it simply failed to get a close below it. Could this indicate that we can soon see BTC at $10k, or is momentum waning? Will BTC have to revisit local support before it can move onto new yearly highs? This is Bitcoin's analysis for the 19th June 2019. 

Highlights:

- BTC price overextended

- Hourly momentum falling

- $8800 support level. $8400 also possible

Kicking it off with an hourly chart and taking a look at RSI, we are able to see the downtrend that has formed on momentum. If we plot a downtrend line on most of the highs on the RSI, it allows us to see where BTC might find resistance.

Currently being against this line tells us that the peak of buying momentum has been reached. That along with RSI making a lower higher on the trend line confirms that resistance was hit. A lower high on RSI indicates that selling pressure is now more than buying pressure, which is usually followed by a decline in price.

BTC/USD chart provided by Tradingview

With RSI now moving away from the trend, it tells us that more selling is taking place and that we should expect a decline in price to come. Looking towards price again, we are also able to spot two downtrend lines that have formed. Currently, price is above the second resistance line, but since RSI does not agree, by not being above its resistance, telling us that price is overextended.

The first support level for BTC is at $8800, which seems like the most likely point at which BTC will find support. In case momentum takes a strong dip, it will cause BTC to fall down to the $8400 level, which was the price point at which momentum started to become overextended.

BTC/USD chart provided by Tradingview

Do you think BTC can reach all the way down to $8400 during this decline, or is BTC too strong and we will see a breakout to $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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