BTCUSD – Weekly Outlook- 24 May 2019

BTCUSD – Technical Analysis for Bitcoin

Introduction

Following an earlier cross of the Relative Strength Index (RSI) above the  level-50 on the weekly chart, the price of the BTCUSD enters overbought territory by a close of the RSI above the level-70 last week’s bar of May 13 ’19. Join us as we look at more technical patterns and exciting news driving the price of Bitcoin as the RSI stays above the level-70.

Bitcoin Fundamentals

Speculative Adoption

CoinMarketCap makes a call for higher transparency in the cryptocurrency market by requesting for adequate information.

The cryptocurrency industry’s renowned data service, CoinMarketCap recently stated that they would provide greater accountability, transparency, from crypto-related projects, following a report of wash trading and fake volume data provided by some crypto exchanges.

The data service provider CMC now makes it compulsory for all exchanges to provide an API (Application Programming Interphase) by June ’19. Failure to comply with the new development will result in the removal of such exchanges from their listings.

The U.S SEC postpones bitwise BTC ETF Application as they seek comments from the Public.

Approval for BTC ETF application sent by the Bitwise asset management to the U.S Securities and Exchange Commission (SEC) is postponed. 

Bitwise made an earlier filing in February, awaiting a 45 days response by the SEC.

Technical Analysis

BTCUSD Monthly View

BTCUSD Analysis - Monthly chart - May 24 2019

Do you notice a break above the level-50 of the Relative Strenght Index (RSI)?

The increase in demand forced the RSI to project above the level-70 into the overbought territory, consequently resulting in a 1705.50% rise in the Bitcoin price.

On March 01 ’18, the RSI exited the overbought territory, represented by a break below the level-70. We believe the exit out of overbought is as a result of traders taking huge profits at these levels. Some traders also seized the moment and entered short sell positions from this level, thereby increasing the selling pressure, and an end to the cryptocurrency bull rush.

Sellers piled up on their sell order, which was reflected by double bearish accumulation pattern on October 01 ’18, consequently forcing the price of Bitcoin to plummet by roughly 48.0% as revealed on a popular cryptocurrency trading platform such as BinaryCent.

BTCUSD: Weekly Chart

BTCUSD Analysis - weekly chart - May 24 2019

Let’s take one step lower to the weekly chart. The Bitcoin price comes out of the oversold zone as revealed by a break above the level-30 of the Relative Strength Index (RSI).

A further advance to April 01 ’19, reveals a break above the level-50 of the RSI, confirming an expansion of demand for BTC.

BTCUSD: Daily Chart

BTCUSD Analysis - daily chart - May 24 2019

A view from the above daily chart reveals a transition from a bearish to a bullish trend on the BTCUSD chart.

The supply of the BTC was on the increase and revealed as a close below the RSI level-30 and a flagged triple bearish pressure setup on November 14 ’18.BTC was on the 

The bullish trend started, following an exit of the oversold region, represented by a close above the RSI level-30, and further reinforced by a regular bullish divergence setup on May 17 ’19.

Critical Resistance Bitcoin (BTC) 

Monthly

12000, 16000, 19891, 

Weekly 

8352.3

Daily

8352.3

Critical Supports Bitcoin (BTC) 

Monthly

1826.2, 3215.2

Weekly 

5901.0, 3215.2

Daily

3767.0, 3405.3, 3215.2

Conclusion and Projection

Before publishing this article, the BTCUSD daily chart already signals a breakout of bearish accumulation on May 19 ’19 and again enters the overbought territory.

The current event is a reflection of profit-taking by bulls most bitcoin broker platforms. A price close above the $8352.3 resistance level will confirm a continuation of the bulls. However, we would recommend only adding to trades after a cross above RSI level-50 from below.

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