Bitcoin's big rally comes to an end

15.06.2020 12:59:19

Bitcoin and major altcoins have almost restored their February levels. If in February of this year, before the fall, Bitcoin was trading slightly above the psychological mark of $10000, then recently it has been trading in the region of $9500.

If you look at the chart of the BTC/USD pair, thanks to the upward rally that began immediately after the decline, Bitcoin from the minimum of $3700 showed a 150% recovery. And an unsuccessful attempt to break above the $10000 mark may indicate the end of this upward rally.

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If we compare the February movement of the BTC/USD pair with the current one, we see that in February the BTC/USD pair quickly enough crossed the area between $9000 and $10000. Now Bitcoin is trading between these levels for almost a month.

In the current situation, analysts identify several signs that the upward rally has indeed completed, and a reversal can be expected. Between May 7 and today, the BTC/USD pair twice fell below the level of $9000. Today, BTC/USD also hit a low of $8900.

On June 11, Bitcoin went beyond the boundaries of the ascending triangle, which began to form in early May. The attempt to return to the triangle was unsuccessful. The $9500 level has converted from a support level to a resistance level. Daily price candles began to form below the baseline of the Bollinger Bands indicator. This situation was observed in February before the decline. Today's candlestick is already drawing below the 50-day Moving Average line. All these arguments indicate that at least the upward rally of Bitcoin has ended. If the price drops below the 50-day MA, a decrease in the BTC/USD pair to around $8500 is possible.

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If we also take into account the correction of Bitcoin with the S&P 500 index, this fact also favors a further bearish correction of Bitcoin. After the growth, the stocks of leading US companies showed a decline on June 11. This day has become one of the worst days for the Dow Jones.

Analysts are inclined to believe that if the decline continues in the stock market, then the decline in the price of Bitcoin will follow immediately. The situation will be repeated with the withdrawal of investor funds from risky assets.