On May 8th, the Bitcoin price experienced a sudden sell-off, resulting in a 2% intraday loss. This selling pressure could have been triggered by Binance, the world’s largest crypto exchange, which paused Bitcoin withdrawals twice since yesterday due to a spike in gas fees. This price drop led to the breach of the support trendline of a symmetrical triangle pattern, indicating a high possibility of a prolonged correction.
The Bitcoin price, which ended two weeks of consolidation on a bearish note, hints at a potential upcoming downfall. A breakdown below the pattern’s support trendline may intensify the selling pressure on the Bitcoin price. The intraday trading volume in Bitcoin reached $15.2 billion, representing a 21% increase.
At the time of writing, the Bitcoin price traded at $28,035 and displayed a bearish breakdown from the support trendline of the triangle pattern. Over the past three weeks, the coin price has resonated within this triangle, reflecting uncertain sentiment among market participants. However, this breakdown seems to favor sellers, offering them additional resistance to pressure buyers. A daily candle closure below the trendline could provide a short entry opportunity for traders and extend the current retracement phase.
The potential decline might drive prices down by 3.6% to reach $27,000 or 10% to hit $25,000 in a bearish market sentiment. On the other hand, if the daily chart presents a long lower price rejection that raises above the trendline, the bearish thesis would be invalidated.
Technical Indicator insights show that the Exponential Moving Average (EMA) witnessed a retest of the support of the 50-day EMA slope with the recent drop. A breakdown below this slope could increase the possibility of a significant correction. The Relative Strength Index (RSI) also experienced a downtick in the daily RSI slope, plunging below the mean line and reflecting aggressive selling pressure in the market.
In summary, the Bitcoin price intraday levels are as follows:
Spot rate: $28,808
Trend: Bearish
Volatility: Medium
Resistance levels: $31,200 and $34,600
Support levels: $27,000 and $25,000
It is essential to emphasize that the presented content may include the personal opinion of the author, and market conditions are always subject to change. Make sure to conduct thorough market research before investing in cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial loss.
Source: Coingape
