Bitcoin Price Technical Analysis (June 6): Is the Correction Stage Over?

Bitcoin BTC Correction

Bitcoin(BTC)trade is currently trading at $7,720. The price is currently around its support level of $7,719. Also, we see a formation of a spinning top at the support, indicating indecision. Looking at the trend, it is suggested to take long position at the current price, keeping support as a stop loss. The support is at $7,719 and resistance at $ 8,214.

Dow Theory

According to Dow Theory, the Bitcoin price is in the public participation phase with some minor correction. During this phase, negative sentiment starts to dissipate. As the good news starts to permeate the market, more and more investors move back in, sending the prices higher. This phase tends not only to be long lasting, but also the one with the largest price movement. It is also the phase in which most technical and trend traders start to take long positions.

This phase is followed by the distribution phase, which is represented by the topping of the market where the price movement starts to flatten as selling pressure increases. The correction is temporary and can give opportunity for taking long position.

Bollinger Bands

The price is moving between the channels whilst the channels are expanding, indicating volatility. The Bitcoin price is almost around the lower channel acting as support and we see that RSI is turning flat indicating negative momentum is over.

Moving Average

When taking 9 period moving averages (blue) with 21 period moving averages (red), we can see a bullish crossover but the price is trading below the moving averages, which is negative sign. The risk averse can take long position after the price is above moving average.


Bitcoin(BTC)trade is currently trading at $7,720. The support is at $7,719 and resistance is at $8,214. Looking at the trend, it is suggested to take long positions but risk-avoiding people can wait for the price to close above the moving averages. The above levels can be used for swing trading. Overall trend is bullish and the correction phase seems to be over. The midterm target is $9,160.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 6726.5 7311.8 7929.4 8514.7 9132.3 9717.6 10335.2
Fibonacci 7311.8 7771.3 8055.2 8514.7 8974.2 9258.1 9717.6
Camarilla 8216.2 8326.5 8436.7 8514.7 8657.3 8767.5 8877.8
Woodie’s 6742.7 7319.9 7945.6 8522.8 9148.5 9725.7 10351.4

Technical Indicators

Name Value Action
RSI(14) 68.473 Buy
STOCH(9,6) 68.016 Buy
STOCHRSI(14) 73.068 Buy
MACD(12,26) 702.100 Buy
ADX(14) 73.803 Overbought
Williams %R -24.174 Buy
CCI(14) 125.6505 Buy
ATR(14) 762.0472 High Volatility
Highs/Lows(14) 1646.6605 Buy
Ultimate Oscillator 58.199 Buy
ROC 99.614 Buy
Bull/Bear Power(13) 3507.5960 Buy

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