Bitcoin (BTC/USD) has been bullish in the first half of May, but has since cooled off and is consolidating mostly under $8400.
BTC/USD 4H Chart
Bulls are still in charge in the short-term.
While price has stalled under $8400, the 4H chart shows it still trading above the 200-period simple moving average (SMA), and sometimes also above the 100-period and 50-period SMAs.
The RSI has held above 40 after it pushed above 70 in early May. This reflects maintenance of the prevailing bullish momentum.
Furthermore, we do see a continuation of higher lows even though the resistance has been flat.
At this point, a break below $7500 will be needed to show any signs of bearish correction against the May rally.
Otherwise, a break above $8400-$8500 area could usher in another speculative swing towards the $9,900-$10,000 level.
For my trading account, I have exited most of the BTC holdings by $7400.
I am considering $10K as the next level of exit, where I would essentially be completely out of BTC for trading.
I like the $6,000 level now for entry, but also want to make sure I have some dry powder for the $5000 and $4400 area.
I use to have entry orders at $3000 and $2000, but the prospect of such a deep pullback after the April-May rallies seems dim now, even if Bitcoin is volatile and speculative.