The mother of cryptos continues its consolidation in a week that promises to be rather calm. Will it continue the downtrend in the short term? Check out this analysis and weekly outlook for bitcoin (BTC).
What do the Medium and Long Term Indicators show?
The monthly MACD shows that the bearish momentum is weakening and may soon show a bullish crossover. This could mean the end of the medium-term bear market in bitcoin (BTC). Additionally, the monthly RSI is also starting to move away from oversold territory, indicating periods under control of the bulls. However, the weekly MACD is currently falling, suggesting a possible short-term correction. The long-term indicators are then bullish, while the weekly indicator is slightly bearish. In this case, we could consider more range (consolidation) before a recovery to the upside.
Bitcoin (BTC): the short-term outlook
On the 4-hour scale, we can see that the price of bitcoin (BTC) is moving in a triangle. Indeed, the queen of crypto is showing low volatility after suffering a 12% decline since May 06. Nonetheless, the price remains above the major medium-term support level around $25,338. The structure of BTC in the medium term therefore remains bullish. Thus, a break above $31,050 would pave the way for a potential upside to around $35,000.
However, a bearish thesis cannot be ruled out in the short term. Indeed, bitcoin (BTC), after reaching $31,050, is making lower and lower lows and highs (LH and LL). Moreover, the lows at $27,000 and $26,586 have already been broken. In the short term, the price could then undergo a correction with a possible target around $25,338. As long as the mother of the cryptos remains below the LH level of $28,332, short-term bearish scenarios remain valid. So, a short position around $28,000 could be interesting. If the price drops to the $25,338 support first, a bounce towards $28,000 could be expected.
Nevertheless, we will have to be attentive to the movements at the start of the week before determining the direction that bitcoin (BTC) will take this week.
Admission: $27,990;
Stop: $28,571;
Goal: $25,338.
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