Conclusion for today’s Bitcoin technical analysis:
Price closing below ~7451.25 implies a selloff in Bitcoin.
Bitcoin analysis for today is carried out using a 4 hour timeframe candlestick chart. Close examination in this analysis and major focus is on the most recent topping formation in price action.
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A pennant chart pattern is highlighted on the 4 hour timeframe chart using price action from May 16 to current date after Bitcoin reached a peak of 8390.95. The aforementioned chart pattern ideally implies a continuation of the previous trend which in this case is bullish. Advanced use of chart patterns and proper use and identification with indicators is available to members and subscribers only.
It is however also important to note a pennant can also sometimes indicate the termination of a prior trend, even if temporarily.
Therefore, any long (buy) order(s) for Bitcoin that is considered conservative should be placed once price attempts a breakout above ~8368.36. This ensures that the pennant is confirmed as operating in a continuous position and also resumption of the previous trend (i.e. bullish).
On the other hand, a break below ~7781.92 which is the upper boundary of immediate support for Bitcoin would also means a break below its 50 moving average. Both of these have bearish implications.
Further move downwards and price breaking below ~7451.25 implies a further sell off that would result in testing of the 200 moving average as a minimum.
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Our previous Bitcoin analysis (BTCUSD) before the current price rally was also posted for FREE and can be found here.