Bitcoin Price Technical Analysis for 5/5/2015 – Double Topping

By May 4, 2015Bitcoin Business
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Bitcoin Price Technical Analysis for 5/5/2015 – Double Topping

After rallying from a low of 214 to 243 last week, bitcoin stalled to start this week unable to clear that 243 resistance. The 1H chart shows the bullish attempt to start the week which failed and eventually formed a double top.

bitcoin 1h chart May 5bitcoin 1h chart May 5

The break below 238-239 area was what completed the double top. It also broke last week’s rising trendline and put btcusd under the 50-hour simple moving averages. While these could be early signs of a bearish reversal from last week’s rally, the breakouts are not significant, especially as price stalled immediately after the break and is now holding above 237 as well as the 100-hour SMA. Also note that the 1H RSI is still holding above 40, which reflects maintenance of the prevailing bullish momentum.

A break below 230 will probably be needed to gain momentum and bearish bias to open up further downside risk back towards the 214 low. In this scenario, we should look for a bearish continuation outlook. The 4H chart would essentially show an expanded flat consolidation, after which, the 200 handle would be in sight.

If price stays above 230, and is able to climb back above 240, the pressure will build not only on the 244 resistance, but open up the upside risk towards the next key resistance levels 255 and 262. 255 is a previous support/resistance pivot, and 262 is a resistance and high from April. This scenario outlook would be in-line with a bullish reversal scenario (or at least a deep bullish correction scenario), which was already signaled last week with the break above a falling trendline, above the 200-, 100-, and 50-period SMAs, and the break above last week’s high around 239.

Again, if price holds above 230, this bullish scenario would still be valid, especially if the 4H RSI holds above 40 and attacks 70 again.

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