Bitcoin Price: First Signs of a Tired Bull?

The bitcoin bull market may be reaching a point of exhaustion, according to price action analysis.

AccessTimeIconNov 3, 2017 at 3:01 p.m. UTC
Updated Sep 14, 2021 at 1:56 p.m. UTC

The bitcoin bull market may be reaching a point of exhaustion.

After the cryptocurrency printed a fresh record high of $7,454.05 on Coindesk's Bitcoin Price Index (BPI) earlier today, BTC has failed twice to hold above $7,400 mark.

The price action, when viewed on the technical chart, shows a "textbook" bull market exhaustion pattern – the first legitimate sign of a tired market after days of solid rally.

4-hour chart

CoinDesk - Unknown

The chart above shows:

  • Doji candle formed at previous record high.
  • Overbought RSI.
  • Potential bearish doji reversal and bearish price-relative strength index (RSI) divergence.

Formed when the open and close for a stock or tradeable asset are virtually the same, a doji candle is a neutral pattern, often read as a sign of exhaustion if it occurs at the top or bottom of the trend. On the chart above, the doji candle has appeared at the record high, suggesting the possibility of bull market exhaustion.

However, only a bearish follow-through (next candle is negative) would signal bullish-to-bearish trend change. A bearish doji reversal would be confirmed if the current 4-hour candle ends with losses (i.e. is red).

The story doesn't end here, though. A bearish price RSI divergence would be confirmed as well, if the current 4-hour candle is red. Bearish price RSI divergence occurs when prices print higher highs, while the RSI prints lower highs.

On the above chart, we see higher highs on the price chart: $7,445 (yesterday's high) and $7,450 (today's high), yet, the RSI is yet to confirm a lower high. If the current 4-hour candle drops into the red, the RSI would form a lower high and thus, a bearish price-RSI divergence would be confirmed.


  • Confirmation of the bearish doji reversal and bearish price RSI divergence could yield a much needed healthy correction to the $6,700–$6,400 range.
  • The bull run may resume if prices consolidate around $7,400 levels over the next 24–48 hours.

Burnout image via Shutterstock


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.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.