Bitcoin Price Analysis BTC / USD: Cooling Down For Summer

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• Bitcoin has a short-term bullish bias, with the cryptocurrency still trading above its 200-period moving average on the four-hour time frame
• The BTC / USD pair’s medium-term outlook remains bullish while price trades above the $8,600 level
• The daily time frame shows a false breakout above the neckline of a bullish inverted head and shoulders pattern

Bitcoin / USD Short-term price analysis

Bitcoin has a bullish short-term trading outlook, with price still trading above the BTC / USD pair’s 200-period moving average on the four-hour time frame.

The four-hour time frame is showing that a false technical breakout occurred above the neckline of an inverted head and shoulders pattern. Key technical support for the BTC / USD pair on any further pullbacks is now located at the $7,500 and $7,000 levels.

Technical indicators on four-hour time frame are bearish and continue to generate a strong sell signal.

Pattern Watch

Traders should note that a large head and shoulders pattern could form on the four-hour time frame if price falls towards the $6,500 support level.

Relative Strength Index

The Relative Strength indicator on the four-hour time frame has turned bearish, highlighting the growing near-term selling pressure.

MACD Indicator

The MACD indicator on the four-hour time frame has turned bearish and continues to issue a strong sell signal.

Fundamental Analysis

BTC fell after its price peaked above $9,000. For the past several years, Bitcoin performance in the summer months was relatively poor. So, investors could be taking profits from the bull run that started in April of this year.

Bitcoin / USD Medium-term price analysis

Bitcoin has a bullish medium-term trading outlook, with the BTC / USD pair still trading well above its key 200-day moving average.

The daily time frame is showing that the BTC / USD pair briefly moved above the neckline of a large inverted head and shoulders pattern. Key technical support on the daily time frame is currently found at the $7,600 and $6,500 levels.

Technical indicators on the daily time frame are mixed, although they currently have a downside trading bias.

Pattern Watch

Traders should note that the large inverted head and shoulders pattern on the daily time frame remains valid while price trades above the $8,200 level.

MACD Indicator

The MACD indicator on the daily time frame is starting to turn bearish, with both the MACD signal line and histogram turning lower.

Relative Strength Index

The Relative Strength indicator on the daily time frame is turning lower, although it still remains technically bullish.

Fundamental Analysis

Bitcoin’s medium term prospects look promising, as several companies are building infrastructure for institutional investors to safely invest in cryptocurrencies. This will likely attract even more money to the market, and increase the demand for BTC.

Conclusion

Bitcoin has undergone a strong technical correction, following a false bullish breakout above the key $9,000 resistance level.

Both the four-hour and the daily time frames continue to show valid bullish patterns, with the $7,500 and $6,500 levels the major downside support levels to watch if the pullback gathers pace.

Bitcoin was the crypto that started it all, including our coin guides.

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