Bitcoin Price Takes a $200 Dollar Tumble After Eight Day Highs

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Bitcoin Price Takes a $200 Dollar Tumble After Eight Day Highs

Having dropped returned from eight-day highs hit this morning, bitcoin (BTC) fee will be in for a bout of consolidation earlier than similarly upside unfolds.

The cryptocurrency rose to $6,596 earlier nowadays on Bitfinex – the highest degree since Sep. 6 – adding credence to the fastterm bullish reversal signaled by the symmetrical triangle breakoutearlier this week.

butno matter the strengthening bullish case, BTC speedy misplaced around $2 hundred quickly earlier than press time. as if writing, BTC is changing arms at $6,450, having published an intraday low of $6,355 a couple of minutes in the past.

even as the sudden rate pullback should pressure buyers to question the sustainability of the corrective rally, the fasttermtechnical charts keep to expose that the course of least resistance is on the higher facet.  Price

Hourly chart

BTC’s retreat from the highs near $6,600 is likely associated with the bearish divergence of the relative strength index seen in the hourly chart.

Indeed, the RSI has adopted a bearish bias, but it is premature to call an end of the technical recovery, as the major moving averages (MAs) – 50-hour, 100-hour, and 200-hour – are still trending north in favor of the bulls

More importantly, the key MAs are capping the downside at press time. This leaves scope intact for a recovery to resistance at $6,800 (multiple daily highs).

Daily chart

On the daily chart, BTC closed (as per UTC) above the 10-day MA yesterday, neutralizing the bearish view put forward by the rising wedge breakdown on Sept. 5.

However, the short-term MA is still sloping downwards. This, coupled with the bearish RSI divergence on the hourly chart could keep the cryptocurrency range-bound for the next 24 hours or so.

It’s worth noting that technical recovery usually gathers speed after the short-term MAs bottom out – unless, of course, there is a major positive fundamental news.

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  • BTC has retreated from eight-day highs, but the technical recovery is still intact.
  • The cryptocurrency could consolidate around $6,400 in the next few hours before resuming the journey towards $6,800.
  • A UTC close below the trendline connecting the June low and Aug. 11 low would put the focus back on the rising wedge breakdown witnessed earlier this month and could yield a drop below $6,000 (February low).

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; Charts by Trading View

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