Thursday, May 23, 2019
Even if the price has dropped, we must keep in mind that in May, bitcoin and ether gained more than 40% and the total market capitalization has increased by more than 60 billion. It is normal and healthy to have correction periods.
Actual support/resistance: $7'500/$7'800
The support at $7'800 didn't hold and the price dropped to test the next support level at $7'500. In terms of technical indicators, the MACD lines crossed last night, indicating a potential change in momentum. As these indicators are often self-realizing, it is likely that automatic sales orders were triggered at the same time. The RSI(14) is in a neutral zone but the price is still above the 20-days moving average. If the support holds and the price stabilizes, a new upward momentum is likely. On the other hand, if the price approaches $7'200 quickly, the last support, we can expect a strong correction to drop back into the $6'000-$6'500 region.
The analysis is based on the latest close price (00:00 UTC time, daily basis)
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