Bitcoin reached down to $8240 during the 5/12 session (Saturday) before rebounding. As we get ready for the 5/14 (Monday) session, price has rebounded to almost $8800. If we look at the daily and the 1H chart, we are seeing a different picture, and this divergence might translate into some choppiness before BTC/USD settles on a directional swing.
BTC/USD 1H Chart
- In the 1H chart, we can see that the most recent recovery is still within the context of the recent bearish trend.
- As of 8:00PM ET, price has stalled under $8800 and the 100-hour SMA.
- The 1H RSI is still mostly under 60, which reflects maintenance of the prevailing bearish momentum.
- So, while we might are seeing a recovery, the prevailing bearish trend is still alive.
- Looking at the daily chart below, we can see that the RSI has tagged 70 and is still holding above 40. In that sense, the bullish momentum since April is still alive.
- The 1H chart looks bearish, while the daily chart has a slight bullish sign.
- But, I think BTC/USD is mainly bearish, and could fall below $8000 after resolving some choppiness in the short-term.
- The fact that price has been holding under the 200-day MSA since March suggests we are still in a bearish market.
- If price can hold above $8000 and climb back above $9000, I would put the bearish outlook on the shelf. We will reassess if that happens.
- Otherwise, we should anticipate a slide towards the $7400-$7600 area.
BTC/USD Daily Chart