Bitcoin Price Technical Analysis (May 20): Bullish Patterns Indicate Another Rally

Bitcoin(BTC)trade is currently trading at approximately $7,760. Looking at the chart, we see the formation of a piercing pattern. It is a bullish pattern. Currently the digital coin is at its support of $7,700 with resistance at $8,300.

In addition, we see flag and cup pattern, both of which are bullish patterns. Therefore, the overall trend is positive. Long position can be taken, keeping support as a stoploss.

Dow Theory

According to Dow Theory price is in the participation phase. 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 prices higher.

This phase tends not only to be the longest 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.

Bollinger Bands

The price is moving between the channels with the middle average line acting as support. Looking at the bands along with RSI we see that earlier the price was in the overbought region which has now been corrected; however, we can still expect a minor correction.

Moving Average

When taking 9 period moving averages (blue) with 21 period moving averages (red), it indicates a positive trend with a bullish crossover. The moving average is acting as support with the price moving above the moving average.

Conclusion

Bitcoin(BTC)trade is currently trading at around $7,760. Currently the digital coin has its support at the vicinity of $7,700 and resistance at $8,300. Although the trend is bullish, some indicators still indicate some more correction.

Therefore, risk takers can take a long position at the current price while risk-avoiders can wait for all the indicators to become positive, keeping support at $7,328. The above-mentioned levels can also be used for swing trading. RSI is back from overbought region into normal region. Long-term trend is bullish with a target price at $9,364.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 5196.4 6028.2 6644.1 7475.9 8091.8 8923.6 9539.5
Fibonacci 6028.2 6581.2 6922.9 7475.9 8028.9 8370.6 8923.6
Camarilla 6861.9 6994.6 7127.3 7475.9 7392.7 7525.4 7658.1
Woodie’s 5088.4 5974.2 6536.1 7421.9 7983.8 8869.6 9431.5

Technical Indicators

Name Value Action
RSI(14) 74.351 Buy
STOCH(9,6) 59.748 Buy
STOCHRSI(14) 100.000 Overbought
MACD(12,26) 456.400 Buy
ADX(14) 67.513 Buy
Williams %R -13.577 Overbought
CCI(14) 180.3863 Buy
ATR(14) 663.1168 High Volatility
Highs/Lows(14) 2183.0386 Buy
Ultimate Oscillator 58.687 Buy
ROC 108.843 Buy
Bull/Bear Power(13) 4062.3645 Buy

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