BTCUSD Analysis: Shooting Star Pattern below $29,961

FXOpen

Bitcoin failed to continue its bullish momentum from last week, and after touching a high of $29,961 on April 30, it declined below the $28,000 handle today in the European trading session.

We can clearly see a shooting star pattern below the $29,961 handle on the H1 timeframe.

Bitcoin continues to move in a correction phase after crossing the $29,000 level, which is indicative of weakness in the immediate short term.

Both the STOCH and STOCHRSI are in overbought zones, which means that in the immediate short term, a decline in the price is expected.

We can see a bearish opening of the markets this week. The prices of Bitcoin are ranging near a new 1-month low.

The relative strength index is at 38.41, indicating very weak demand for Bitcoin and the continuation of the selling pressure in the market.

Bitcoin is now moving below 100-hour and 200-hour exponential moving averages.

Most of the major technical indicators are bearish, which means that in the immediate short term, we can expect a fall to $27,500 and $27,000.

The average true range indicates less market volatility with mild bearish momentum.

  • Bitcoin bearish reversal is seen below $29,961.
  • The RSI remains below 50, indicating a bearish market.
  • The price is now trading below its pivot level of $28,078.
  • The short-term range is mildly bearish.
  • Some major technical indicators signal that the price may move to $27,000 and $26,500 soon.

Bitcoin Bearish Reversal Seen below $29,961

The price of Bitcoin continues to fall and is expected to enter into a consolidation zone above the $27,000 handle, after which we can see the start of a bullish move.

There is a bearish trend reversal pattern with a 20-period adaptive moving average in the 30-minute timeframe.

The price is ranging near the horizontal resistance in the weekly timeframe.

We can see the formation of a bearish engulfing pattern in the 4-hour timeframe.

A support zone is located at $26,624, which is a 38.2% retracement from the 13-week high, and at $26,940, which is the first support point of the pivot point indicator.

BTCUSD is now facing its classic support level of $27,904 and Fibonacci support level of $27,972, breaking which the price may move to $27,500.

There is a decrease of 15.23% in the daily trading volume, which is normal. The short-term outlook for Bitcoin is bearish, the medium-term outlook has turned bearish, and the long-term outlook remains neutral under present market conditions.

The Week Ahead

We can see that Bitcoin was unable to cross the $30,000 handle and remains in a downtrend, with the current support at $27,489, which is a 3-10 day MACD oscillator.

The support is at $27,200, after which we may see some consolidation in the zone of the $27,000 level.

The monthly RSI is at 50.15, which indicates the neutral market and the shift towards the consolidation zone in the medium-term range.

There is a bearish trend line from $29,961 to $27,760.

The BTCUSD is now facing resistance at $28,255, where the price crosses the 9-day moving average, and at $28,444, which is a pivot point.

The weekly outlook is $27,000, with a consolidation zone at $27,500.

This article represents FXOpen Companies’ opinion only, it should not be construed as an offer, solicitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

Bitcoin Price Bullish after Halving-2024 ADA Drops to Last Place in the Top 10 Cryptocurrencies BTC/USD Analysis: Bitcoin Price Rises Ahead of Halving BTC/USD Analysis: Bearish Arguments Become More Convincing DOGE Price Increases by 170% in Less Than 2 Months

Latest articles

Indices

Germany's DAX 40 Index Flying High Despite Pessimistic National Outlook

For a number of years now, there has been a lot of discourse over the current situation and the future of the German domestic economy.

From both inside Germany and globally, analysts, government officials, and corporate leaders have demonstrated a

Forex Analysis

Volatility in the Pound Is Rising, the Euro is Consolidating

GBP/USD

At the end of last week, the British currency fell sharply, testing a significant support level at 1.2300. The resumption of the downward trend for the pair became possible after some statements by British officials:

  • On Wednesday,
Commodities

The Price of Gold XAU/USD Shows Strongest Fall in Almost 2 Years

On Monday, the price of gold fell from USD 2,386 to USD 2,333 per ounce — this is the strongest drop in one day in almost 2 years, according to Bloomberg. On Tuesday morning in the Asian session, the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.