Bitcoin Selloff Has Bears in Charge
Bitcoin’s (BTC) price pullback from the recent highs above 8,500 looks like a short-term Bear market on the technicals.
The leading cryptocurrency fell to a 2-week low of 6900.995 earlier Saturday
The sell-off from the recent high of 8,507 had shown signs of exhaustion near 7,455, the 38% Fibo retrace of the rally from the June low at 5,755 Wednesday, raising prospects of a move higher to 8,000.
BTC did not find support s Thursday and the rejection signaled Bearish exhaustion and encouraging the Bears to push it down to 2-week lows.
As a result, BTC appears to have entered a short-term bear market. The price chart analysis shows the prices could drop further to 6887.3695 according to my work.
Currently, Bitcoin is trading at 6,995.0049, –430.12 or -5.79%, the market is closed.
BTC closed below the 100-day MA Thursday, adding scope to the signs of a short-term Bearish reversal; a Bearish crossover between the 5-Day and 10-Day MAs and a Southside break of the ascending trendline by the RSI and sending it below 50.00, Bearish territory.
The 100-Day MA had acted as Key resistance before it was taken out on 23 July. BTC rallied 800 on 24 July, boosting the 100-Day MA as a Key technical mark.
The Bears like this action
The Bears have it in here and a further fall is seen now..
4-hour chart
Since RSI indicates BTC is oversold a small short lived bounce cannot be ruled out because the Bearish setup on the daily.
Only a clear break above 8,000 negates this trend and would allow the Bulls to come back.
Stay tuned…
Bitcoin Selloff Has Bears in Charge added by Paul Ebeling on
View all posts by Paul Ebeling →
Paul Ebeling
Latest posts by Paul Ebeling (see all)
- The Street’s Key Stock Analysts Research Reports - October 22, 2018
- Tesla (NASDAQ:TSLA) Key Quarterly Financial Report Coming - October 22, 2018
- Commentary: Paul Ebeling on Wall Street - October 22, 2018