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..
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.