Bitcoin Bull Bias Fades as Price Drops Below $6.5K

A daily close (as per UTC) below 10-day moving average would abort bitcoin's short-term bullish view.

Jul 10, 2018 at 10:40 a.m. UTC
Updated Sep 13, 2021 at 8:09 a.m. UTC

Bitcoin (BTC) is on the defensive today and could suffer deeper losses in the next few days should the bulls fail to defend the key moving average (MA) support, the technical charts indicate.

The leading cryptocurrency looked vulnerable to a pullback 24 hours ago, courtesy of the signs of bullish exhaustion near key resistance of $6,800. Hence, the drop to $6436 seen today is not surprising, but has certainly boosted the odds of a close (as per UTC) below the all-important 10-day moving average (MA).

It is worth noting that the short-term moving average is still biased to the bulls (rising). So, as discussed yesterday, a strong defense of the 10-day MA support would reinforce the short-term bullish outlook and could yield a rally to $7,000.

As of writing, the leading cryptocurrency is trading at $6,460 on Bitfinex – down 5.5 percent from the high of $6,839 reached over the weekend.

Daily chart

CoinDesk - Unknown

The daily candle has already breached the 10-day MA support of $6,585, however, only a close today (as per UTC) below that level would abort the short-term bullish view put forward by the bullish RSI divergence and the falling channel breakout last week.

That said, the probability of BTC closing below the 10-day MA is quite high as the short duration charts have already turned bearish.

4-hour chart

CoinDesk - Unknown

The rising channel breakdown indicates the corrective rally from the June 24 low of $5,755 has ended.

Further, the relative strength index (RSI) has turned bearish (below 50.00). Meanwhile, BTC has also breached the support of 200-candle MA. Clearly, the bears must be feeling emboldened

View

  • The bearish breakdown on the 4-hour chart indicates BTC could test the 50-candle MA, currently located at $6,381, and could close below the 10-day MA today, confirming a short-term bullish invalidation.
  • Acceptance below $6,381 (50-candle MA) would expose 6,000 (February low and major psychological support).
  • The bulls may build steam for a fresh move higher towards $7,000 if BTC closes above 10-day MA today.

Bitcoin image 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
GameStop Unveils Crypto & NFT Wallet, Beeple's Twitter Account Latest to Phishing Scam Hacks and More

The most valuable crypto stories for Thursday, May 23, 2022.

The most valuable crypto stories for Thursday, May 23, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: Funds Lost Billions in the Terra Collapse. Here are the Ongoing Effects; Bitcoin Sees Red

When a fund suffers a major dent to its token, the impact reverberates widely throughout the venture funding eco-system; most major cryptos fell despite gains in U.S. equity markets.

When a fund suffers a major dent to its token, the impact reverberates widely throughout the venture funding eco-system; most major cryptos fell despite gains in U.S. equity markets.

CoinDesk - Unknown
3
CoinDesk - Unknown
At Davos, Crypto Is No Longer on the Outside

Cryptocurrencies have taken a prominent role at the World Economic Forum's annual meeting in Davos, despite the mainstream finance world's apparent contempt for the sector.

Cryptocurrencies have taken a prominent role at the World Economic Forum's annual meeting in Davos, despite the mainstream finance world's apparent contempt for the sector.

CoinDesk - Unknown
4
CoinDesk - Unknown
Wall Street Says a Fed Digital Dollar Spells Destruction for Banks

The Federal Reserve is considering whether to launch a CBDC like other nations, and bankers argue that’s a dangerous idea.

The Federal Reserve is considering whether to launch a CBDC like other nations, and bankers argue that’s a dangerous idea.

CoinDesk - Unknown