Bitcoin price consolidates above $9,200 as Halving approaches near

Bitcoin Price May

Bitcoin price has been in consolidation for the past two days has been stuck in a triangular pattern. The explosive run beyond the $9000 mark and now consolidation shows that large-scale uptrend BTC price is still intact. The symmetrical triangle pattern is consolidating around $9,000 mark while the peak lies somewhere near the $9300 mark. The price can swiftly move upwards in case the apex of the triangle breaks confidently.

Bitcoin Price - crypto heatmap - 06-May-2020

Cryptocurrency Heat Map by Coin360.com

The ongoing tussle between buyers and sellers will probably last a few days more as the halving event nears. Also, the volatility can spike in the next few days. In terms of volume, the last three days have been low-key as whales are probably sitting on the sidelines and waiting for the Halving to pass so they can jump in after trend confirmation. Low volume is also indicative that a significant price move is about to happen.

Bitcoin price awaiting buyers as approaching Halving squeezes daily volumes

In weekly charts, the Bitcoin price is well-positioned to close the week above the crucial $8,400 mark. The same level also reflects the rising trend-line from the $6,800 lows, which were breached last week. As the price is consistently trying to breach the apex of the symmetrical triangle and touching $9300, the bullish pattern hints will invite more buyers sooner or later.

Bitcoin price 06-May-2020

Bitcoin Price Chart by TradingView

However, there are specific contrarian signals emerging on the hourly timeframes that may reflect the overbought tendency. The MACD signal on the 4-hour chart is making lower highs and indicating a small term downside. The bearish divergence is also signaling the end of the bullish wave that carried the Bitcoin price from $6,250 lows to the highs of $9,200.

Bitcoin Price - 06-May-2020 - Alan Masters 2

Bitcoin price chart by TradingView

It is usual for the price to correct a little after riding a strong wave upwards. A rally towards $8,675 is possible if Bitcoin price breaks EMA10. Further, Alan Masters points out that the price can touch $8,234 if BTC price breaks the EMA50 line. The RSI indicator also looks bullish with a reading above 70.

The buyers are lining up as the price consolidates at $9,250. If the price inches higher, the next stop can be $10,400.

Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan holds no liability towards any investments based on the information provided on this page.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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