Bitcoin (BTC) Price Prediction – May 11
The Bitcoin price stares into a bottomless pit, especially if the pennant pattern support is broken.
BTC/USD Long-term Trend: Ranging (Daily Chart)
Resistance Levels: $60,000, $62,000, $64,000
Support Levels: $51,000, $49,000, $47,000
At the time of writing, BTC/USD is hovering at $55,655. There have been instances when BTC has exchanged hands below $55,000 sustaining the bearish price action is a downhill task. As it stands now, the path of least resistance is still downwards. A glance at the daily chart shows the formation of a bearish pennant pattern.
Where is BTC Price Going Next?
Looking at the technical indicator Relative Strength Index (14) in the daily range, BTC/USD is not done with the downside. This means that there is still room that could be explored by the bears. Moreover, the coin may continue to follow the downtrend if it breaks below the 9-day and 21-day moving averages.
On the upside, recovery may not come easy. First, support will have to be sort for above the 9-day moving average. Meanwhile, a sustainable move above this barrier is located around $57,000, which may negate the bearish scenario and allow for an extended recovery towards the resistance levels at $60,000, $62,000, and $64,000. However, an increase in selling pressure across the market could force the Bitcoin price towards a painful path and through various tentative supports at $51,000, $49,000, and $47,000.
BTC/USD Medium-Term Trend: Ranging (4H Chart)
Looking at the 4-hour chart, the Bitcoin bulls have not been able to push the market price above the 9-day and 21-day moving averages. BTC/USD has survived the $55,000 support as the market resumes upside momentum. The king coin is likely to return to the bull market if the price breaks above the $57,000 level. Higher resistance is located at $58,000 and above.
However, if the pennant support caves in, even $55,000 may not be able to hold the support. Meanwhile, the Relative Strength Index (14) is changing position as the signal line moves above the 40-level. On the contrary, BTC/USD is likely to fall to $53,000 and below if the price falls below the lower boundary of the channel.