Drop to $9K Still in Play Despite Brief Bitcoin Rally

Released at Thu, 10 May 2018 09:00:19 +0000
The momentum studies have been biased bearish. As an example, the 100-hour MA is trending south in favour of the bears and the 50-hour MA remains gradually abbreviated (yet to bottom out or discard bearish bias).

Even though a brief rally, bitcoin (BTC) remains in corrective mode and risks falling back under $9,000, graph analysis suggests.
The breakout also increased the prospects of a stronger move towards $9,767 (April 25 large) and maybe even the10,000 mark.

The cryptocurrency broke out of the   bearish falling station installment Wednesday, hinting of a bullish relative strength index (RSI) divergence – signaling the pullback in the current high of $9,990 had stopped in  a low cost of $8,980.

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Moreover, the short-term moving averages in the daily graph have rolled over in favor of the bears.

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  • a rest under $9,228 (support on the hourly graph) would add credence to the bearish 5-day MA and 10-day MA crossover and open the doors for a drop to $8,980 and $8,868 (100-day moving average).
  • A daily near (according to UTC) under $8,652 (April 26 low) would confirm a minimal alteration.
  • On the higher side, a daily close (according to UTC) over the 10-day MA (currently located at $9,452) will signal the end of the pullback in the current high of $9,990.

Daily graph

Hourly chart

However, the ascent has been cut short approximately $9,380 in the last 15 hours, as noticed at the hourly graph below.
Consequently, a persuasive move over $9,442 can be a challenging undertaking.

The bearish crossover between the 5-day MA along with the 10-day MA suggests a short term (5 times) bullish-to-bearish fashion shift. In addition, it suggests the pullback in the current high of $9,990 hasn’t run its course.

Arrows picture via Shutterstock

As of writing, bitcoin is trying a break over $9,380 on Bitfinex, over which a major resistance is observed at $9,442 – that the 200-hour moving average (MA).