Technical Analysis of Bitcoin BTCUSD May-June, 2019

Last month May closed bullish following an upsurge in buying pressure after a price close above critical sell pressure resistance of $4384.0 in April.

Let’s dive in and take a look at the significant price patterns and levels where the events took place.

For more crypto technical and fundamental analysis, visit Cryptocointrade.

BTCUSD: Monthly Chart

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A top-down analysis of Bitcoin vs. USD reveals a change in polarity from bearish to bullish accumulation at the closing bar of March 01. The breakout of bearish pressure on April 01 signaled an increase in buying influence in April, resulting in a 63.7% price increase.

The RSI indicator also signaled a cross above level-50 at the closing price in April.

BTCUSD: Weekly Chart

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A series of bullish closing weekly bars reflect an increase in buying pressure as the Bitcoin price entered overbought territory after the closing price of May 06 bar.

BTCUSD: Daily Chart

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Similar to the weekly charts, a view from the daily time frame shows how the bulls launched the Bitcoin price into overbought as reflected by a crossover above the RSI level-70 on May 02.

Buying pressure increased following a price close above the sellers’ resistance of $6102.0 on May 08.

Towards the end of the month, the BTC price established a monthly high of $9109.0 on May 30, from hidden bullish divergence setups signaled in combination with a breakout of bearish accumulation on May 19, 23, and 31.

A weak bullish accumulation setup was signaled yesterday June 01 as the first sign of bullish comeback in the new month.

BTCUSD: 4Hour Chart

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The above 4hour illustration shows how the monthly high of May played out.

A sudden increase in volatility towards the upside saw the RSI entering into overbought territory, and exits on the next four-hour bar on May 30 11:00, setting up resistance at 9109.0.

The price dropped and established bearish accumulation pattern at the nineteenth hour of May 30.

Notice the loading comment we made on the chart for a breakout of the $8367.0 selling resistance.

BTCUSD: 1Hour Chart

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The above intraday chart shows how the price broke out of the triangle pattern and later crashed out of the overbought zone at the eleventh hour of May 30.

Just within the same time range, a bearish accumulation setup was signaled on the 4hour charts, the one-hour chart s signals RSI oversold May 30 and 31.

We look forward to an upward movement of the price should the RSI cross above the level-50.

Major Resistance Levels of Bitcoin (BTC)

Monthly

9109.0

Weekly

9109.0

Daily

9109.0

4HOUR

9109.0, 8367.0, 8005.0

1HOUR

9109.0, 8686.8

Major Support Levels of Bitcoin (BTC)

Monthly

3215.2

Weekly

5365.0, 5901.0

Daily

5901.0, 6007.8, 6999.9, 7950.0, 7436.4

4HOUR

6007.8, 6999.9, 7207.6, 7600.1

1HOUR

8455.0, 8573.5

Conclusion and Projection

Despite a bearish close of the previous week, the Bitcoin price from a monthly and weekly time frame maintain a healthy bullish outlook.

An exit of the overbought region will indicate a drop in demand. For now, we expect further price increase in June, initiating a trailing stop loss order as the price make new highs.

For more crypto technical and fundamental analysis, visit Cryptocointrade.

 

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