Failed Breakout Revives Bitcoin's Bull-Bear Tug-of-War

Bitcoin's retreat from Sunday's high of $7,779 has poured cold water over the bull mood generated by the weekend's positive price action.

AccessTimeIconJun 5, 2018 at 10:00 a.m. UTC
Updated Sep 13, 2021 at 8:01 a.m. UTC

Bitcoin's retreat from Sunday's high of $7,779 has poured cold water over the bull mood generated by the weekend's positive price action and neutralized the immediate outlook.

BTC closed on Sunday (as per UTC) above a key falling trendline resistance level, signaling a short-term bullish-to-bearish trend change. A bullish crossover between the 5-day and 10-day moving average (MA) also favored a short-term positive price action.

However, bitcoin suffered a rising wedge breakdown (bearish pattern) in the U.S. hours on Monday, signaling that the corrective rally from the recent low of $7,040 had ended.

In the end, the failed breakout was no surprise, as low trading volumes had warned of a bull trap.

At press time, the cryptocurrency is changing hands at a four-day low of $7,426 on Bitfinex, down 2.5 percent over 24 hours.

Daily chart


The above chart shows that bitcoin is back inside a falling channel and risks a quick drop to $6,980 (triangle support) if the bulls fail to defend the support at $7,260 (May 24 low).

Further, the rising-wedge breakdown as seen in the 4-hour chart below, also indicates the corrective rally has ended and prices could soon revisit the recent low of $7,040.

4-hour chart


Still, the overall outlook may be more neutral, with bitcoin creating a doji candle on the 4-hour chart above, signaling indecision in the marketplace.

If the current 4-hour candle closes below $7,732, it could bolster the already bearish technicals (failed breakout). Meanwhile, if the current 4-hour candle closes above $7,500, bitcoin could revisit $7,700.


  • Bitcoin's drop back inside the falling channel as seen in the daily chart indicates the immediate upward pressure has eased.
  • Acceptance below $7,260 would confirm the corrective rally has ended and could yield a drop to $6,980 (triangle support).
  • A daily close below $6,980 would signal a revival of the sell-off from the record high of $19,891. In this case, BTC could revisit and possibly break below the February low of $6,000.
  • A short-term bullish revival is seen only above Sunday's high of $7,779.

Tug-of-war 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.