Briefly based on the BTC chart for May 8, taking into account movements over the last 12 hours.
- Since yesterday evening the price has been showing weakness. It broke through the volume level of $62,987 and went under EMA 50 of the four-hour time frame. There is a struggle for the upward trend since December 5, 2023 (indicated by a dotted line).
- The price is once again testing the breakdown of the downward trend since April 8. It is important for the bulls to stay above it.
- the PGiP on the chart is not broken, the right shoulder continues to form.
- It is important to maintain the volume level of $61,231 during the correction. While the price is higher, the formation of the pattern continues and there is a high probability of its completion. And the chart can show a quick collection of all the accumulated liquidity of the bears in the range from the current rate to $64,120. If volatility returns to the market - and up to $65,892 (where the downward trend comes next from March 14, indicated by a dotted line).
- The current decline cannot be called a downward reversal.
- But in fact, May 4-7 are the days when the daily candle failed to ensure a breakdown and consolidation above the EMA of the 50 day TF. This is an unsuccessful breakout and until it finally happens, the price is in a range or correction.
The BTC price volatility index hints that there is a high risk of a range, a “cut” in two directions. For now, for us, the range in the range of $61,231-$64,120 is the priority scenario until the end of the week.
