• Home
  • Trading
  • Live Data
  • Events
Home Trading Bitcoin Price Analysis BTC / USD: Correction Doesn't Invalidate Trend

Shutterstock

Bitcoin Price Analysis BTC / USD: Correction Doesn’t Invalidate Trend

Bitcoin can't go up forever, but the correction doesn't invalidate its bullish trend.

-

  • Bitcoin has started to correct lower in short-term after buying interest above the $8,000 level began to wane
  • The four-hour time frame is currently showing a bearish head and shoulders pattern
  • Both the four-hour and daily time frame still remain technically bullish

Bitcoin / USD Short-term price analysis

Bitcoin has a bullish short-term trading outlook, with the BTC / USD pair still trading above its 200-period moving average despite the large technical correction lower.

The four-hour time frame is showing that a bearish head and shoulders pattern has been created, with the BTC / USD pair failing below neckline support.

Technical indicators on four-hour time frame have turned bearish and generate strong sell signals.

SIMETRI Research

 

BTC H4 Chart May 17, powered by Trading ViewBTC / USD H4 Chart by TradingView

 

Pattern Watch

Traders should note that if the BTC / USD pair falls towards the $6,800 level a much larger head and shoulders pattern will form on the four-hour time frame.

Relative Strength Index

The Relative Strength indicator on the four-hour time frame has turned bearish and can still trade lower.

MACD Indicator

The MACD indicator on the four-hour time frame has turned bearish and shows scope for further downside.


Bitcoin / USD Medium-term price analysis

Bitcoin remains bullish bias over the medium-term horizon, with the BTC / USD pair still trading way above its trend-defining 200-day moving average.

The daily time frame is showing that a strong technical correction is currently underway after the BTC / USD pair formed a large inverted head and shoulders pattern, but crucially failed to move price above the neckline of the pattern.

Technical indicators on the daily time frame are starting to turn bearish and have significant downside potential.

 

BTC Daily Chart May 17, powered by Trading ViewBTC / USD Daily Chart by TradingView

 

Pattern Watch

Traders should note that the daily time frame is highlighting the $6,500 and $5,400 levels as major downside technical support.

Relative Strength Index

The Relative Strength Index is bullish, although it is now correcting lower alongside the recent decline.

MACD Indicator

The MACD indicator on the daily time frame is attempting to turn bearish and is still extremely overbought.



Conclusion

Bitcoin is starting to correct lower in short-term after reaching its initial bullish target above the important $8,000 resistance level.

While the bearish pattern on the four-hour time frame points to an even deeper technical correction for BTC / USD pair, the bullish pattern on the daily time frame still suggests the number one cryptocurrency can trade much higher over the medium-term.

 

Check out our coin guide for Bitcoin if you’re here by accident.

Bitcoin Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

Avatar
The Analyst Team
Crypto Briefing has become known for providing thoughtful and insightful diligence on early-stage blockchain ventures. Our reports are distributed globally, including via Binance Info. Almost 100 free, unpaid, and independent Digital Asset Reports and Evaluations and early-stage crypto assessments are available by clicking on the CB icon, right here.

JOIN OUR COMMUNITY!

Join the conversation on Telegram and Twitter!

8,109FollowersFollow
1,314SubscribersSubscribe

More News & Analysis

Get The Best Of Crypto Briefing!

Crypto news flashes, new DARE research, upcoming mainnet launches, market reports, and much more!

X
X