FX.co ★ Bitcoin analysis for May 06, 2019

BTC lost the upside momentum from last week and it started to form balance area, which is sign for the potential downward correction.

Technical picture:

Purple horizontal rectangle – resistance cluster

Orange median line – Pitchfork median line (mean)/resistance

Upper rising green line – Diagonal resistance

The market started to balance at level of $6.100 and on the critical resistance, which may be indication of the potential downward correction in the next period. Support levels are seen at the price of $5.645 and $5.344. Strong median Pitchfork line is acting like resistance plus we got strong resistance cluster from the previous price action in the background. The MACD oscillator is suggesting the bearish divergence, which is another sign of the potential weakness on BTC. Watch for selling opportunities with the target at $5.645.