In May, bitcoin managed to complete its second-worst monthly close in its history. It is now trading inside a short-term pattern that is neutral. It has also managed to reach its confluence full of its resistance level.
The month of May has been working as a bearish for the BTC. It has recorded a loss of 35.59%. This has been the second-highest decrease in the month, which was ever recorded. Previously, in the November of 2018, its price had a decrease of 37%.
The technical indicators are providing a mix of readings. In the previous two bull cycles, the RSI had managed to make in the two of the tops in the overbought territory before the ending of this bull run. During the current phase, it could only make one top.
However, when an RSI managed to cross the mark below 70, it signified the end of the bull cycle in both the years 2013 and 2017. Currently, the monthly RSI has just managed to cross the mark below 70.
Hence, it requires to have a look at the lower time frames to analyze the direction for the future trend. This daily time frame is providing a much more bullish outlook.
The RSI has managed to complete a failure swing bottom. It has also generated bullish divergence in the triple scale. The divergence trendline is still intact in its place. At the same time, the MACD is rising after rendering a bullish reversed signal. The Stochastic bullish oscillator seems to be very close to forming a bullish cross.
Thus, the readings in the daily time frame are also bullish. The two-hour chart shows that the BTC is trading within the symmetrical triangle. This is usually known as the neutral pattern. In case the movement is a part of wave four, then the price is expected to reach the top near the level of $38000. This is known as the 0.618 Fib retracement resistance level. It is an expected level of wave E, which will come to an end.
But instead of it, if there is a breakout from the triangle, it will go a long way to suggest that BTC has completed its correction despite the movement, which had been a part of wave four.