Bitcoin's Cost Pullback Risks Bear Revival Below $6.9K
Bitcoin's Price Pullback Risks Bear Revival Below $6.9K
On the other hand, the short term case would weaken whether the cryptocurrency finds approval under the 100-day moving average (MA) of 6,905.
- A UTC near below $6,905 will confirm a spinning high speed reversal and strengthen the odds of a downside fracture of this rising wedge design.
- An increasing wedge breakdown would signal a resumption of their sell-off from the July high of 8,507 and can yield a drop to $6,000 (February low).
- A close today above the 100-day MA will keep the bulls from the match and allow a continued move over $7,200 from the next couple of days.
Bitcoin picture via Shutterstock; abbreviated by Trading View
Bitcoin (BTC) bulls need to shield key support at $6,905, else the short-term bullish prognosis would be invalidated.
The pullback from the last day’s high of 7,139 does not appear as a surprise, even since the 21 percentage rally observed in the last two weeks was appearing overstretched yesterday.
Acceptance under the wedge support would confirm the downtrend from the July high of 8,507 has declared and a bullish-to-bearish trend change, that is, the rally from 5,859’s low has ended. In this case, lows could be revisited by BTC under $ 6,000.
On Bitfinex, the major cryptocurrency is trading at $ 6,920 6,920 at press time — down two percent over a 24-hour basis.
The leader in blockchain information, CoinDesk is a press outlet that strives for the highest journalistic standards and abides by a strict group of qualitative policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies along with blockchain startups.
BTC has breached the increasing trendline in favor of those bears as seen from the above chart. Consequently, the emboldened bears can push the cryptocurrency down to the ascending (bullish) 50-candle MA, currently located at $6,735.
Therefore, the bulls need to shield the 100-day MA of 6,905 to keep the outlook intact. Having said that, the brief duration graphs are pointing to an increased risk of a drop below $6,905.
BTC created a spinning top candle suggesting indecision from the market. When viewed against the background of this 21 percent rally bullish exhaustion is represented by the turning candle.
A UTC shut under the 100-day MA would affirm that the turning top candle and change risk in favor of a break of the rising wedge.