BTCUSD – Weekly outlook for Bitcoin Price – June 6 2019

BTCUSD Outlook & Technical Analysis

Introduction

For the first time since the Bitcoin price entered the weekly overbought area, the RSI threatens to close below the level-70 to show a drop in speculative demand as revealed on Binomo broker. However, BTCUSD technical analyst like Cred and Josh Rager are still macro bullish on the crypto giant (BTC), as they claim that the Fear of Missing out (FOMO) is responsible for the vertical price surge.

Bitcoin Fundamentals

Bitcoin: In the news

HodlHodl: P2P BTC Exchange Launches Support for Lightning Network

According to a Medium article issued on 5th June ’19, HodlHodl, a P2P Bitcoin (BTC) exchange announced support for Lightning Network.

In the announcement, the exchange claimed that everyone could buy and sell Bitcoin right from the firms’ Lightning wallet.

Following a successful implementation on the test network, the company claims that the procedure won’t be different from the usual HodlHodl transactions.

The exception being that funds are held in the company’s Lightning wallet, thereby protecting purchaser and dealer from scams, as well as having faster, and cheaper contracts.

The P2P company stress that the implementation does not affect other parts of the platform and that multi-signature on-chain Bitcoin contracts on the platform remain non-custodial.

Technical Analysis

BTCUSD: Weekly Chart

BTCUSD Outlook - Weekly Chart - June 6 2019

After entering the overbought territory on 06 May ’19, the Bulls took advantage of further price rally for three weeks before taking out some profits.

The weekly time frame shows possible price correction as the BTCUSD currently threaten to close below the 8005.0 bullish accumulation support level 0f 27 May ’19.

By the end of the week, if the Bitcoin price closes below the 8005.0 support, we should expect a 38.2% or 50% price retracement.

A weekly closing price that’s greater than the 8005.0 level indicates the presence of buyers and confidence to continue the bullish campaign.

BTCUSD: Daily Chart

BTCUSD Outlook - Daily Chart - June 6 2019

From the daily chart perspective, the BTCUSD simultaneously signaled regular bearish divergence with a dark cloud cover and selling pressure pattern.

The support level of 7436.4 is crucial for the formation of a hidden bullish divergence setup as the MACD makes lower low compared to prices current higher low.

A price close below the reference support of 7436.4 changes the price pattern altogether.

As the RSI currently cross below the level-50, a higher value than the level-50 from below will confirm the bullish rally.

BTCUSD: H4 Chart

Early take profit signals were triggered on 30 May ’19 11:00, following a regular bearish divergence, alongside a dark cloud cover candlestick pattern. 

Having a regular bearish divergence setup on both the daily and 4hour time frame is critical and increases the chances for the price to plummet, as it later did after a price close below crucial support on 02 June ’19 23:00.

Although the bearish accumulation resistance on 03 June ’19 23:00 was thought to be weak considering that the RSI was coming out of oversold, the bulls could not breach the 7989.0 resistance at the time.

BTCUSD: H1 Chart

From an intraday chart perspective, the pair on 02 June ’19 08:00 left the overbought territory. Further increase in selling pressure forced the price below bullish support on 02 June 19 19:00 setting up resistance at 8753.9

Bullish moves such as the regular bullish divergence on 04 Jun ’19 18:00 may be all the bulls need for a price rally.

Conclusion and Projection

Considering that speculation accounts for a higher for the higher percentage of bitcoin transactions, we maintain a long term (Monthly chart) bullish outlook on the BTCUSD, with the price blowing through the $10,000.00 round number going forward.

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James Martin

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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