It’s no surprise to see Bitcoin pullback after 13 weeks of higher lows. Bitcoin was forming another tightening pattern, this time it broke bearish after we broke the low of $8005. Bears had a good amount of continuation and were able to bring Bitcoin down to $7481.
The daily chart is certainly showing signs of a trend change, we are now currently in a downtrend on the daily chart and bears are trying to form a bear flag. Long term, Bitcoin is still bullish and the weekly trend is still basically intact, the monthly chart can easily form a bull flag, which would be quite ideal for the bulls.
This pullback wasn’t a surprise and a lot of analysts expected it for some time now, the RSI is now at 50 for the first time in 3 months. This move, however, might have been caused by a whale, a redditor found out that someone moved 25k BTC just before the crash, someone selling that amount of Bitcoin could certainly cause a crash and trigger a lot of stop loss orders. https://www.reddit.com/r/CryptoCurrency/comments/bwjdnw/btc_dump_pure_whale_manipulation/
Analysts are still quite optimistic about bitcoin and most of them think this is a healthy move even if it was caused by manipulation.
I see this similar pattern often on lower time frames.
– Consolidation of a bullish trend
– Breakdown or "fake out" from consolidation
– An abrupt buy back and a strong candle back above the breakdown area
Lastly, a steady drop to support and strong continuation. pic.twitter.com/MS18vNpXMb
— NebraskanGooner📈 (@nebraskangooner) June 6, 2019
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