Jun 3, 2019 at 11:00 UTC Updated Jun 3, 2019 at 13:53 UTC
BTC risks falling below $8,000 in the short-term, having created a doji candle last week.
Below $8,000, the focus would shift to the 30-day moving average, currently at $7,643, which has a penchant for reversing price pullbacks.
The outlook as per the daily chart would turn bearish if the price sees a UTC close below the 30-day MA. The long-term outlook will remain bullish as long as the price is trading above May’s low of $5,263.
The case for a short-term correction would weaken if bitcoin bounces from the bullish 5-week moving average, currently at $8,220, and ends up clearing today’s high of $8,746.
Bitcoin (BTC) could revisit sub-$8,000 levels in the short-term, as a longer-duration chart is flashing signs of bullish exhaustion for the first time this year.
The world’s top cryptocurrency by market capitalization witnessed solid two-way business last week. Prices rose to fresh 12-month highs near $9,100 only to fall back all the way to $8,000 before registering a flat close at $8,735, according to Bitstamp data.
The indecisive price action came after a solid rally. For instance, BTC rose by $3,800 in the preceding four weeks and is currently up more than 125 percent on a year-to-date basis. Further, BTC closed May with 62 percent gains – the biggest monthly gain since August 2017.
So, the ambiguous trading activity witnessed last week could be considered a sign of buyer exhaustion. That argument would be further strengthened if prices settle below $8,000 this Sunday.
Therefore, the psychological support of $8,000 is the level to defend for the bulls. As of writing, BTC is changing hands at $8,465 on Bitstamp, representing a 1.2 percent drop on a 24-hour basis. Prices hit a high and low of $8,746 and $8,336, respectively, earlier today.