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.

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

bticoin-daily

Weekly chart

bitcoin-weekly

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.

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