Bitcoin Price Drops Below $3,500, But Is a Relief Rally In Sight?

The price of bitcoin may be down on bearish news today, but as we head into Thursday's trading, charts indicate bulls may be ready to hold the line.

Sep 14, 2017 at 2:00 p.m. UTC
Updated Sep 14, 2021 at 1:56 p.m. UTC
Layer 2

The bitcoin-US dollar exchange (BTC/USD) rate fell to a fresh four-week low of $3,413 this morning following reports that Shanghai-based bitcoin exchange BTCC will shut down its domestic trading operations effective September 30.

As such, the announcement is the latest that supports the rumor regulators are preparing a formal ban on domestic bitcoin exchanges. Long liquidations in BTC markets have gathered pace amid fears that a confirmation from the People's Bank of China will follow over the next few days.

According to data from CoinMarketCap, bitcoin's price has shed 11 percent over the last 24 hours. The drop seen today has taken the week-on-week losses to 24 percent. Month-on-month, the cryptocurrency is down 19 percent.

Though driven lower by the bearish news flow, the sell-off should not come as a surprise as price action analysis favors the downside toward $3,000.

Let's have a look at new developments on the technical charts that corroborate the bearish view presented 24 hours ago.

Daily chart

CoinDesk - Unknown

Weekly chart

CoinDesk - Unknown

View

  • Bitcoin has already retracted close to 50 percent of the July–September rally. With the 1-hour and 4-hour RSI hovering in the oversold territory, the dips below the upward sloping 10-week SMA could be short lived.
  • A move higher to $3,750-3,800 cannot be ruled out before another round of sell-off unfolds.
  • In the long-term, BTC looks set to test $3,000 levels.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Ferris wheel via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, 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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Dominates but Altcoins Lurk

Although Terra's collapse has raised existential questions about the future of DeFi, some traders appear to be preparing for a return to altcoins; BTC remains rangebound below $30,000 in Tuesday trading.

Although Terra's collapse has raised existential questions about the future of DeFi, some traders appear to be preparing for a return to altcoins; BTC remains rangebound below $30,000 in Tuesday trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
NEAR Protocol

CoinDesk - Unknown
3
CoinDesk - Unknown
MOBOX

CoinDesk - Unknown
4
CoinDesk - Unknown
Moonriver

CoinDesk - Unknown