The cryptocurrency market is experiencing another down trend. The top 20 cryptos are currently sitting at losses, with the exception of Tron, which is making a decent bounce. Bitcoin is trading at $8,340 as of press time.
The month of April was generally positive for the cryptomarket. Going into May, cryptocurrencies were recording decent gains. During the past week, Bitcoin price was rallying upward towards the $10,000 mark, which is the major resistance area.
Lack of Volume Confirmation
After forming a reverse head-and-shoulder pattern, which indicated a bullish sign, Bitcoin failed to breach the $10,000 mark due to lack of confirmation in volume. As predicted in our previous technical analysis, without trade volume confirmation, prices went down to the $8000 price point, which is a major support area.
Looking at the chart, we can see that a double support is forming at the $8200 price level. If this holds well, we can expect a healthy bounce off this point. The major resistance that needs to be broken is still the $10,000 level.
Death Cross Again?
Regarding the Exponential Moving Averages, we can see another death cross imminent, which could mean bad news for Bitcoin prices. The last time we saw the 50-Day EMA cross the 200-Day EMA downward, prices were just beginning to plummet. If this pattern holds true, we may see further decrease in Bitcoin price. The only thing that could reverse this is if trade volume increases in the next few days in favor of the buying side.
All in all, Bitcoin’s sharp plummet in price is as predicted. Hopefully, the cryptomarket will be able to rebound in the next weeks as we enter the months of June and July, which are historically bullish for the entire cryptomarket.
