Bitcoin hits a strong resistance at $8k after magnificent mini-rally

May 25, 2019 7:04 am Published by Leave your thoughts

It’s the third time now that Bitcoin has attempted to break the $8k barrier, but for now it seems like the bulls have had their fun.

Looking at the Daily chart it’s obvious that we are bound to see some type of a retracement soon enough. For one thing the Relative Strength Index has been hovering around the overbought area for way too long.

Additionally MACD just crossed downwards and Divergence shows a smooth descending pattern.

Not to mention the candlestick pattern itself with a double top, first one being a little higher than the next and finally the 3rd top we are currently in the process of forming- looks like it will be even lower than the previous two.

Where is Bitcoin going now?

My personal understanding is that Bitcoin might fall towards the $7k area because there’s the Exponential MA 25 around that area. I’ve no idea how many traders follow the same MA’s, but that’s just my preference.

I just opened a short position with a target at $7k on CEX.IO for kicks. We’ll see how it plays out. It’s always thrilling to short something bullish 🙂

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This post was written by ynef