An update about BTC price today, MAy 13, shows that the cryptocurrency has made a modest gain. It is possible that some investors are optimistic that the coin has bottomed. As per our prediction of yesterday, we mentioned that the $30k support is crucial to the mid-term direction of Bitcoin.
We also highlighted that BTC is heading towards the $25k support. However, with today’s gains, it is apparent that the bulls are willing to support the market at the $30k level. This is not surprising, considering that this is the point at which the cryptocurrency gained the confidence of institutional investors.
Bitcoin is trading at $30,487.84, up by 7.43% at the time of filing this report. This is a change from yesterday’s price when BTC fell to a low of $26.31k. Bitcoin has already gained $6k in the past 24 hours, but it is still premature to conclude that it is the beginning of another cycle.
A Repetitive Pattern
We also highlighted that BTC historical pattern gives insight into future price actions expected from the cryptocurrency. From the 4H charts, a hidden bearish division can be inferred if we compare the recent price action of Bitcoin to its historical pattern. This has formed with the $30k-$31k pivot zone as confirmed by Cryptocapo.
When we compare the two charts, we can see that the last wave that goes down is yet to be formed. This is the hidden bearish wave that we expect to pull BTC down to around $21k-$24k region. This is the pattern of the last correction in March. What this implies is that the next one or two breaks of the $30k support will set BTC up for a cascade down to around the $21k mark.
This downtrend is obvious from the 20-day and 50-day moving averages from Tradingview. We can also see that the Bitcoin vs USDT chart RSI has the value of 49. This means that bulls are weakening and the buying pressure will soon reduce. On Coinmarketcap, we can notice a 40.48% drop in BTC trade volume over the last 24 hours. With the market cap up by 8.7%, our view is that the market movers are yet to move.
This is not financial advice
Image credit – Cryptocapo