Bitcoin Faces Further Price Losses After Breaching Long-Term Support

Omkar Godbole
Jul 24, 2019 at 10:15 UTC
Updated Jul 25, 2019 at 10:09 UTC
markets

Bitcoin is on the defensive for the fourth straight day, having breached long-term support on Tuesday.

The leading cryptocurrency by market value is currently trading at $9,720, representing a 1.1 percent drop from today’s opening price of $9,841, according to Bitstamp data. Prices fell 1.39, 2.56 and 4.66 percent, respectively in the previous three trading days.

Daily chart

With a three-day drop, BTC has left another bearish lower high at $11,120. Further, the cryptocurrency violated the four-month bullish rising trendline by printing a UTC close well below $10,000 on Tuesday.

As a result, a drop to the July 17 low of $9,049 in the short-term cannot be ruled out.

Such a drop would hardly be surprising, given the bounce from that level to weekend’s high of $11,120 was accompanied by falling volumes, as discussed yesterday.

So far, the downside has been restricted around $9,650, meaning the support at $9,614 (July 2 low) is still intact.

However, that level could be breached soon as key daily chart indicators like the moving average convergence divergence histogram indicating the bearish momentum is gathering strength.

The case for a drop toward $9,650 would weaken if prices rise above $10,222, invalidating a bearish lower highs pattern on the 4-hour chart. That said, a UTC close above $11,100 is needed to confirm a bullish reversal.

Bitcoin image via Shutterstock; chart by TradingView

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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.