Bitcoin update

BTC/USD

Bitcoin could not break out of $10,000 on May 05 and May 06. Later, prices turned around and broke below the support line of the ascending channel, which is a bearish sign. Currently, the 20-day EMA has been offering a strong support. If this level holds, the bulls will again attempt to break out of the overhead resistance at $10,000 and rally to $12,000 levels with a minor resistance at $11,000.

If the support zone between the 20-day EMA and $9,000 breaks, the BTC/USD pair can fall to the 50-day SMA at $8,500. Therefore, we suggest retaining the stops at $8,900.
If the $9,000 level holds, there is a possibility of an ascending triangle formation. Hence, we want to keep our positions open with a stop loss below which the probability of a slide increase.