After a 11% decline at press time, Bitcoin was concluding its bearish week. BTC was priced just above $32,500, as other assets met their lows from May 19. Support levels at $40,500 and $34,800 have both been breached but there are a few bullish signs for the upcoming days. However, this particular analysis needs to be taken with a grain of salt, as sentiment is driving the market more than structure/patterns at the moment.
Bitcoin 4-hour chart
Over the past 48-hours, Bitcoin has tested support at $34,800, 4 times, with the 4th correction invalidating its strength. During the recovery movement on 20 May, the price was not able to close a position above resistance at $40,500, which led to further selling pressure. While the correction seems like a bottomless pit at the moment, a falling pattern is currently taking shape. The pattern may lead to a bullish breakout, allowing BTC to close a position above $34,500 over the next 12-16 hours.
While supporting a bullish condition feels stretched, considering current price trends, a bullish divergence was identified between MACD and the retracing candle movement. However, further bearish exposure would see Bitcoin tested previous low at $30,000.
Awesome Oscillator continues to be under intense bearish momentum as any bullish recovery is getting thwarted by the bears. Relative Strength Index or RSI has registered a consistent drop near the oversold region, which indicated that the market should jump up, anytime now. At press time, selling pressure continued to be more dominant.
While the market should move forward at the start of next week, it is important to wait out the shuffling and, allow market recovery before evaluating an entry.