Bitcoin (BTC) cryptocurrency rate corrected after another dump, but was unable to gain a foothold above the key resistance barrier. Therefore, the coin should drop in price to $ 33,500 by June 8th.
On May 27, the value of Bitcoin began to fall again. In two days, the asset fell by 17% – to $ 33,400 (Bitstamp data). However, an upward trend emerged on Sunday and the value of the cryptocurrency corrected by 13%. Then, the coin’s rate bounced off the 220-hour exponential moving average, which coincides with 50% Fib, taking into account the decline in the coin’s price from $ 64,900 to $ 10,000.
The price of BTC changes within a contracting triangle, so the level of volatility in the value of the asset is decreasing. Over the next week, the value of Bitcoin is likely to fluctuate in the corridor from $ 38,500 to $ 33,500. The lines of the figure will cross on June, 10. The pattern is bearish, therefore, the triangle is likely to be broken downward. Given this factor, a new wave of coin sell-off could start next week.
Many traders and analysts have made a forecast for the continuation of the bullish trend and substantiated this assumption by the unusual dynamics of the BTC rate after reaching the all-time high ($ 64,900) on April 14. Having set a record, the price of the asset fluctuated for three days and then fell sharply. As a result, the Bart Simpson head pattern was formed on the chart. Earlier, for example, at the end of 2017, Simpson’s hairstyle did not appear on the chart, because the price of Bitcoin immediately plummeted downward.
Bart’s move comes as a result of low liquidity. Due to the small volume of orders, whales easily dump the cryptocurrency rate and manipulate the market. However, in the entire history of BTC trading, the bullish trend has never continued after falling over 40%. This spring, the price of Bitcoin has dropped by almost 54%, so there is no point in indulging in illusions about the upcoming to the moon. In January 2018, the price of BTC climbed to the level of -12% compared to the record value. Taking this fact into account, an increase in the value of a coin even up to $ 55,000 should be viewed as a bullish trap and trade, focusing on the worst-case scenario – a reduction in the price of an asset to $ 10,000.