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Technical Analysis of BTC/USD May 13, 2019

Introduction

A breach in the security of the Binance exchange that led to a loss of about 7,070 bitcoin (BTC) could not slow down speculative adoption of Bitcoin.

Traders, Investors, and HODLERs force the Bitcoin price above a new $8000.00 round number, emphasizing an understanding between the Bitcoin blockchain and exchanges. Is a Purchase in Bitcoin worth it at this time? This, you will find out in the following Technical Analysis.

Technical Analysis

BTC/USD: Monthly Chart

Increased selling pressure on September and October 2018 resulted in the final price plummet of about 47% that settled into another bearish accumulation on December 2018 and January 2019 across significant cryptocurrency exchanges.

The long-awaited bottoming of the 2018 bearish trend was confirmed by a combination of bullish hidden divergence and breakout bearish accumulation resistance on April 01 2019.

BTC/USD: Weekly Chart

A view from the weekly time frame reveals an early signal confirming the bottoming of the cryptocurrency market.

Starting with a breakout of a bearish accumulation on December 17, 2018, the upward volatility retraced, allowing for a golden cross of the MACD oscillator on January 21, 2019, for a 118.30% price increase.

BTC/USD: Daily Chart

Let us take it another step lower to the daily chart where the Bitcoin price blazed through the trail of a rising bullish channel built from bearish followed by an opposing bullish divergence setup.

After an increase in the channels angle of inclination, the pair breaks through a bearish accumulation resistance on May 08, 2019.

Rising bullish pressure from the break of bearish accumulation resistance resulted in a 31.9% price increase from the breakout point.

BTC/USD: 4-HOUR Chart

A breakout of bearish accumulation at the 11th hour of April 27, 2019, saw the Bitcoin price flowing into a steadily rising bullish trend with strong support at $5351.0, and $5301.0.

Advancing further at a price increase of 16.3%, the BTCUSD entered into another rising channel similar to the daily chart.

Following a breakout of a bearish accumulation resistance within the rising channel, the pair skyrockets by about 33.0%, breaking beyond the $8000 round number resistance.

BTC/USD: 2-HOUR Chart

A series of bullish and bearish divergence patterns on the above daily chart played an essential role in bringing the price of the pair to the current high.

The bullish hidden divergence setups on May 06 and 13 2019 as we already know indicates a continuation of the rising BTCUSD exchange rate.

A bearish divergence pattern like the one formed on May 09 2019 emphasizes bearish sentiment. An increase in bullish pressure shoots the Bitcoin price above the opposing divergence resistance.

The most recent breakout of bearish accumulation resistance should be sufficient to shoot price above the $8000.00 mark again.

BTC/USD: 1-HOUR Chart

The above 1hour time frame of the BTCUSD reveals a rejection of bearish pressure resistance levels on May 11, 12, and 14 2019.

A flagged single bullish pressure price formation on May 13 ’19 11:00 set up support at $7661.0 which later served as a springboard on May 14 ’19 17:00, in combination with a hidden bullish divergence setup.

Major Resistance Levels of Bitcoin (BTC)

1-Hour

5200.0

4-Hour

5373.9, 5488.0

Daily

5488.0

Weekly

6741.4

Monthly

8506.7, 7788.0, 7429.2

Major Support Levels of Bitcoin (BTC)

1-Hour

5054.8, 4977.0, 5052.9

4-Hour

4071.0, 4112.0, 4172.0, 4745.0, 4834.0, 4992.6, 4934.7

Daily

3767.0, 3939.0, 3948.4, 4842.2, 4960.2

Weekly

3215.2, 3405.3, 3761.2, 3882.0

Monthly

3215.2, 3767.0, 4218.0, 4384.0

Conclusion and Projection

The Bitcoin price shatters through previous bearish accumulation resistance price of 2018, a significant one being the $7788.0 level.

HODLERs will be delighted to know that the significant trend of the BTCUSD which is the monthly charts have switched to bullish, and they can look forward to price targets of $10,000, and $15,000 respectively.

HODLERs can look forward to these levels considering that they guarded against risks of whipsaw and whiplash on exchanges.

Retail and margined account traders, on the other hand, should look into taking frequent profits from their current bullish positions.


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Lennart Corwin