Bitcoin Rally Losing Momentum | Is the Top in?

Bitcoin Rally Losing Momentum

Bitcoin rally is losing momentum as prices have remained in the $8k price channel for the last week. Bitcoin just had its best May performance of all time, therefore, a pullback is to be expected. Looking at the daily chart above, the sequential indicator is on a green 2 candle. While a pullback is to be expected, Bitcoin’s daily chart is still bullish for the rest of the week. However, there is a bearish divergence on the RSI which is telling us that Bitcoin is looking somewhat toppy.

Weekly

Bitcoin has finally made a green 9 on the sequential indicator. In previous articles, we have been following the weekly sequential indicator for over a month now. Green 9’s typically lead to large price actions in one direction. While Bitcoin’s daily chart is bullish for the rest of the week, Bitcoin’s weekly chart is looking very toppy as the RSI is beginning to come down from an overextended point.

4 Hour

Bitcoin’s 4 hour chart is on a red 4 on the sequential indicator. A price flip should occur within the next 20 hours with more bullish momentum following. Bitcoin is bullish on a short-term time frame.

Cryptocurrency News

Binance exchange published a research report this weekend which highlighted many ways the crypto market has evolved over the past year. One notable statistic highlights the growth of stablecoins.

As you can see in the graph above, stablecoins have increased from one-third to about three-fifths of total crypto volumes in just 12 months. Additionally, institutions only represent an estimated 7% of the crypto market at the present time. These findings seem to illustrate the current rally has been powered by existing market participants and not a result of newcomers entering the space.

Conclusion

Bitcoin has finally reached a green 9 on the weekly chart after its best May performance ever. Price is bullish in the short-term but a pullback is likely to occur by the end of the week if Bitcoin cannot close above $9k. If Bitcoin increases past $9.5k and makes a green 1 next week, it is possible we will see new all-time highs by the end of 2019. If Bitcoin cannot reach $9.5k by the end of the week and breaks below $8.2k, look for a significant pullback of 30-40%. A pullback of this kind would present an ideal buying opportunity for the beginning of a possible bull market.

Disclaimer: The author of the article owns Bitcoin.