Bitcoin Drops Back to $5K Price Support After Failed Breakout

Daniel Palmer
Apr 11, 2019 at 10:50 UTC
Updated Apr 11, 2019 at 20:30 UTC
markets

Bitcoin (BTC) has fallen back to support at $5,000 after a failed breakout Wednesday.

The number one cryptocurrency by market valuation made a strong bullish break from an ascending triangle pattern yesterday evening at 18:00 UTC, reaching a peak of $5,488 on the Coinbase exchange. However, that move was quickly rejected and an increase in selling pressure on today’s open laid the pathway for bitcoin to slide, first to $5,200 overnight, then quickly to $5,018 soon before press time.

At press time, bitcoin is trading at $5,068, down over 3 percent for the session, as per CoinDesk price data.

The drop may now have thrown a spanner into a bullish market setup that had looked likely to propel prices to highs not seen since late last year. Had bitcoin’s triangle breakout succeeded, a measured move to $5,800 may have been on the cards. However, bitcoin fell $300 short of that target as buyer volume fell short on the day.

With bitcoin taking a hit, the wider crypto market is also flashing red at press time. Other top tokens, such as ether and XRP are fairing worse than bitcoin, posting 24-hour losses of 7.46 and 5.85 percent, respectively, according to CoinMarketCap data.

Disclosure: The author currently holds BTC, TRX and BTT.

Bitcoin image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.


This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.