Bitcoin’s price on May 8, 2024, is currently sitting at $62,378, with a 24-hour intraday range between $62,096 and $64,413. The trading volume stands at $17.91 billion, and the market capitalization is valued at $1.22 trillion. Despite a 2.1% decline in the past 24 hours, bitcoin has seen a 9.3% gain over the last seven days.
When analyzing the 1-hour and 4-hour BTC/USD charts on May 8, it becomes clear that the overall trend is bearish. The 1-hour chart shows a significant downward trend, starting around $64,389 and sharply dropping to approximately $62,054.
Looking at the 4-hour chart, we observe a similar sentiment with price fluctuations reaching a peak at $65,513 before descending. This indicates a potential exit point for traders who hold long positions in the short term.
Examining the oscillators, such as the relative strength index (RSI) and moving average convergence divergence (MACD) levels, on Wednesday’s charts, we see mixed signals. These oscillators lean towards neutral to bullish signals, suggesting some buying momentum.
However, when considering the moving averages from the 10-day to 200-day periods, there is a notable tilt towards bearish sentiment, particularly in shorter time spans like the 30-day and 50-day averages. This divergence calls for a strategic analysis of entry and exit points, especially for short-term trading.
Taking a broader look at the daily chart, we can see a bearish sentiment as bitcoin’s price reached a high of $72,756 on April 7, followed by a consistent downturn over the past four weeks. This extended consolidation period indicates strong selling pressure, further reinforcing exit signals for long positions and potential entry points for short positions below the $66,000 threshold, where recent attempts to rise above have failed.
Bull Verdict:
Despite the overall bearish signals, key indicators on the oscillators, such as MACD Levels and RSI, suggest underlying strength. If bitcoin can maintain support above the 200-day moving average and experience increased buying volumes, it could potentially pivot towards a bullish breakout. Traders should keep an eye out for reversal patterns and increased market participation to confirm the beginning of a bullish phase.
Bear Verdict:
The prevalence of bearish signals across most short to mid-term moving averages, combined with negative patterns observed in the daily and hourly charts, strengthens the bearish outlook. The inability to break past critical resistance levels suggests that BTC’s downward trajectory may continue.
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