A downtrend is encountered in the last 24hrs which is confirmed by a symmetrical triangle pattern. The continuous appearance of a bearish regular divergence pattern is observed thus triggered a strong selling pressure from investors.
A decline price rally has been buttressed by the 21-day MA that is seen above the 7 day MA indicating a bearish signal. The moving averages confirm strong weakening of the bullish regular divergence patterns.
The BTC/USD pair began the day trading at $7889.6 (A) but later dropped to $7800.0 where the bulls tried and pushed the price up to a high of $8039.9. The RSI X is above 50 thus reflecting the buying pressure at that period of time.
This was later followed by a period of consolidation (B) that resulted in the formation of a bearish engulfing pattern that further dip the price performance to a low of $7607.3 (C). The RSI Z is seen below 50 thus confirming the strong selling pressure.
Resistance level was later placed at $7678.9 and support level at $7589 where a sideways price momentum is reflected between those levels. BTC is currently trading at $7781 this shows a dip in price may be due to lack of artificial propped up.
The RSI is trading downwards indicating that the price momentum is predominantly with sellers. The 21 day MA is still above the 7 day MA indicating continuity of a bearish market rally in the next few hours.
Just like the BTC/USD pair, ETH/USD pair is also experiencing a bearish market rally. This is confirmed by the 21-day MA that is seen above the 7-day MA.
The ETH started trading at $254.50, followed by a slight dip in price performance but later the bulls tried to push the price up but due to weakening of bullish presence, traders couldn’t push the price any farther.
At around May 22nd 19:00 a bearish regular divergence pattern emerged that led to a further drop of price performance that closes at $243.35, placing significant levels at $247.84 (R) and at $242.77 (S) thus resistance and support level.
Later on, a period of consolidation is seen with the presence of Doji candles that indicated a lack of momentum in the market. The RSI X is seen below 30 indicating an oversold market. Around May 23rd 05:00 a bearish engulfing candle emerged and further dropped ETH price to its current price $241.02.
A Decrease in price reflects a lack of confidence in the coin by investor’s thus strong selling pressure is encountered.
The RSI is seen below 30 this increase possibility of the downtrend to reverse upward thus an uptrend is likely to be seen in the next few hours. New target should be set at 235.73.
Bitcoin SV (BSV-USD)
A ranging market is seen in the last 24hrs, this is reflected by the intertwining moving averages. The bearish regular divergence pattern is signaled simultaneously thus indicating a bearish market rally.
The price performance of BSV started trading at $101.760 (A). This was followed by the repeated appearance of Doji candles that showed equality and indecision in the market, the bulls later managed to push the price performance up to a high of $111.09 (B).
But traders dropped the price action past resistance level $100.478 to close at 97.895 (C) thus placing support level at $97.832, this significant level was then tested severally. The RSI is trading between 70 and 30 this shows that there has been no dominance either from sellers nor buyers.
The upward price rally is likely to be seen later on, and a sideways trend is expected in the next few hours since the RSI is trading at 50. New support should be placed at $99.706 and stop-loss should be set slightly below or above support since a breakout or breakdown is likely to occur.