During the week the price of Bitcoin tried to overcome the mark of $8,300 three times, but now it risks descending to the mark of $6,333, CoinDesk analyst Omkar Godboul is sure.
On the daily chart, you can see the one-day model of the Hanged Man or bearish hummer, which often signals a bearish reversal. The emergence of such a candle after the upward movement may indicate a collision with a serious level of resistance, as well as the fact that sellers gradually take over the buyers.
The short-term downward correction will be confirmed if the daily candle closes below $7581 (the lower extremum of the Hanged Pattern). After that, the continuation of the decline to the 30-day moving average (MA), which has long served as reliable support for the price, is likely. Currently, this MA is passing through the $6333 mark.
The pattern Hanged Pattern will lose its relevance if the next day the price consolidates above $8,200. After that, with high probability, the upward movement will continue to the level of $8500.
The 4-hour chart shows how on May 19 the price confidently recovered from the level of $7,250 to $8,000. This sharp increase canceled the bearish divergences on RSI and Chaikin Money Flow (CMF) indicators. Thus, in the short term, the next retest of marks in the region of $8,300 is possible.
On the other hand, as it approaches $8,000, trading volumes fall.
Reducing the interest of buyers at higher levels can serve as a short-term obstacle to further growth.
Earlier, well-known trader Peter Brandt noted that Bitcoin repeats the same patterns on the chart as in 2015, after which its price increased about 100 times.