Bitcoin spent part of the 5/18 and 5/19 session in consolidation. After down to 229 during the 5/18 session, price traded sideways, but did spike up to 236.60 area during the 5/19 session. As we get into the 5/20 US session, this 229-236.60 area is the new consolidation range.
The 1H chart shows that there is still bearish bias as price holds under the 100-, and 200-hour SMA. The 50, 100, and 200-hour SMAs are all sloping down and in bearish alignment. Furthermore, the RSI has held mostly under 60 after tagging below 30, which shows maintenance of the bearish momentum. Now following the prevailing downtrend, at least in the short-term, we should anticipate resistance if price approaches 236 again. However, a break above 237 would signal bullish reversal especially if the 1H RSI pushes above 70.
The 4H chart shows a market that rallied from 214 to 249 before retreating last week. The bullish bias is killed as price now trades under the SMAs and the RSI has broken below 40. However, a break back above 239 would take price back above the SMAs and above a falling trendline. This would open up a bullish scenario towards the 249 high with risk of extending higher and opening up the 300-315 resistance area. A break below 228 however opens up the 214 low.
When we look at the daily chart, we can see that above 249/250, the next resistance is around the 300-315 resistance area, but we should also monitor the 280 area, where the 200-day SMA resides.
To the downside, we noted pressure towards 214 if btcusd breaks below 278. The bearish outlook would be in-line with the prevailing downtrend from 2014. So the bearish breakout also would have the 166 low in sight with a break below 213.
Previous Post by Author: BoE Voted Unanimously; GBP/USD Stalling at Key Support