Short-Lived Rebound? Bitcoin Struggles to Retake $7,200

Bitcoin prices dropped to a four-day low below $6,950 yesterday before regaining some poise. So has the pullback run out of steam?

AccessTimeIconNov 7, 2017 at 1:30 p.m. UTC
Updated Sep 13, 2021 at 7:08 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin traders seem a touch tentative today.

At press time, the bitcoin-U.S. dollar (BTC/USD) exchange rate is at $7,200 levels. BTC prices dropped to a four-day low below $6,950 yesterday before regaining poise, although the 5-day moving average (located above $7,200) is proving tough to crack.

So has the pullback run out of steam? Comments on social media indicate that, while some traders see the potential for a healthy correction to $6,500, others predict the market is likely to stay volatile ahead of the expected Segwit2x hard fork.

The odds seem high that the pullback has legs, given that the sell-off on Monday was backed by a 30 percent surge in volumes. A high-volume price drop usually means the investors sold in large quantities and is considered a negative indicator.

However, Google search volumes have declined over the last 18 hours, perhaps validating the argument that the retreat from the record highs is anything but "panic selling." Search volumes tend to go up during such events as investors scout for information.

Meanwhile, the price action analysis indicates bitcoin is likely to witness consolidation with downside bias over the next couple of days.

Bitcoin chart


The above chart shows:

  • Bearish doji reversal
  • Relative strength index (RSI) is still overbought
  • 5-day MA is offering strong resistance
  • A confluence of 10-day MA and the trend line support at $6,868.

A bearish doji reversal occurs when a doji candle (one with a virtually equal open/close price) is followed by a negative price action on the following day. On the above chart, Sunday's doji candle was followed by a big red candle on Monday.


  • The doji reversal confirmation indicates the stellar rally in BTC may have run out of steam, and that prices could drop to $6,868 and $6,500 levels in the next couple of days.
  • However, dips below $6,868 are likely to be short-lived, given the 10-day MA still favors the bulls (slopes upwards).
  • On the higher side, only a sustained move above $7,500 would open doors for a rally towards $8,000.

Bouncing ball image via Shutterstock


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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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.