$8.4k provides resistance again, can BTC break through?

20 May, 2019
by Lourens Pepler
Price Analysis
$8.4k provides resistance again, can BTC break through?

This past weekend was a bit up and down, with Bitcoin breaking down to $7k on Friday, only to return to $8.4k on Sunday. This price action has turned many bear traders bullish, but some still remain cautious as we have not yet broken free from $8.4k. 

Highlights:

- $8.4k strong resistance

- 2015 similarities

Starting with the daily we can see that momentum on the RSI is still strong and keeping the price near its highs of $8.4k. The 200EMA is trending to the upside, but we have not yet revisited it since we broke $4800 making us a bit cautious of a possible move down back to the 200EMA. In 2015 Bitcoin already experienced a similar situation, so let's look to the past to see what can possibly happen.

BTC/USD chart provided by Tradingview

2015 similarities?

Using a 3day chart to look at 2015 price action we can notice some similarities, but for now all we care about is what happened after it broke the downtrend and passed the 200EMA. In this example, we can see that price pushed way past the 200EMA before returning to it for a retest. Afterwards, Bitcoin trended sideways for a while before breaking out. Now, let's go back to our current 3day chart to lay out this possibility.

USD/BTC chart provided by Tradingview

On the current 3 day chart, we can see the similarities in resistance and support, making us believe that $8.4k will be resistance and that the 200EMA must be retested. At the moment the 200EMA is at $5500, but since the price is hovering at around $8k, it will soon rise to the $6k zone. As we mentioned in our previous BTC analysis we feel that $6k prize zone must be retested before we can continue higher and break $8.4k resistance.

BTC/USD chart provided by Tradingview

Just because it happened in 2015 does not at all mean it will happen today, but it does line up quite well with our previous post analysis. Will Bitcoin copy itself and follow the same structure, or will we ignore it and break through to new highs? 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.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Poll

Is Bitcoin trading above its value?

(31 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage