Bitcoin Fails at Key Price Hurdle, Risks Return to $8,000

Omkar Godbole
Oct 11, 2019 at 11:00 UTC
Updated Oct 11, 2019 at 11:03 UTC
markets

Bitcoin is facing further losses after the bulls failed to capitalize on price gains seen this week.

The cryptocurrency’s quick pullback from a 2.5-week high of $8,830 to below $8,400 this morning has invalidated a bullish breakout on the 4-hour chart seen Wednesday, as seen below.

4-hour chart

The failure to hold above the 200-day moving average (MA) at $8,654 has also weakened the bullish outlook on the daily chart and may have shifted risk in favor of a drop to $8,000 in the next 24 hours.

Daily chart

Bitcoin crossed the 200-day MA in the Asian trading hours on Friday and jumped to highs above $8,800, as expected. The breakout was short-lived, however, and prices fell from $8,820 to $8,356 in the 60 minutes to 06:00 UTC.

The failure to hold above the long-term average – a barometer of the long-term trend and a level which has acted as stiff resistance over the last two weeks – may embolden sellers, possibly leading to the deeper slide to $8,000.

A daily close above the 200-day MA is needed to revive the short-term bullish setup.

Bitcoin image via Shutterstocck; charts via 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.