Bitcoin (BTC/USD) has remained bullish despite the sharp decline from $9760 to $8600. We anticipated support at $8600, and a possible return to the $9150 area, which would be within the bearish outlook. Price climbed back a bit higher making us still consider bulls to be in control.
BTC/USD 4H Chart
- If we look at the 4H chart, Bitcoin still looks bullish since its April rebound.
- Price held above even the 50-period simple moving average (SMA), and the RSI held above 40.
- If these 2 noted conditions break, then we can start considering the bearish outlook.
- We should also look for a break below $8600 before considering the April rally over.
- If price indeed break below $8600, we can anticipate a dip to $7800-$8000 area as the next support.
- For now, I would limit the bearish outlook to $7500. If price can hold above $7500, we should consider upside towards the $11750 area (Feb-March highs).