Bitcoin is taking a breather, but $8400 is still possible

13 May, 2019
by Lourens Pepler
Price Analysis
Bitcoin is taking a breather, but $8400 is still possible

Bitcoin has stunned everyone gaining 20% over this past weekend. Many traders have turned bullish following the price action, but can we go higher?

Highlights:

- $BTC Trading within daily channel

- Total market cap above $200B

- Retrace to $6000 before we move higher?

The total cryptocurrency market cap is now at $212B. These are the same levels that the market deemed support for most of the bear market in 2018. With $BTC now trading above $7000 we have to look for next important price level. The daily shows us that we have hit minor resistance at the $7500 zone. With it struggling to push through $7500 along with RSI making a double top above 70 we should expect a retrace is on the way. Below us we have support around $6500 and even stronger support near $5800.

BTC/USD chart provided by Tradingview

Bitcoin price getting exhausted?
Taking a look at a smaller time frame on the hourly we can see that price is getting a bit exhausted. BTC traded above the 70 RSI line for more than a day, indicating overbought conditions. The 200EMA is trending up towards our daily support line of $6500 to provide proper support for the coming retrace. There is a chance that we can get one final push towards $7500 to give it a retest to break and get denied.

For now things are looking very good for $BTC as we are still trading far above $6000 and have good support levels below us.

BTC/USD chart provided by Tradingview

Many traders are waiting for BTC to get a retrace so that they can buy in lower, but will they get a chance or will Bitcoin break through more resistance and possibly get us back to $10k? Let us know in the comments!

Disclaimer: Keep in mind this not investment or trading advice. As always, do your own research, make your own decisions.

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