Bitcoin Fails at Key Price Hurdle, Risks Return to $8,000
Bitcoin's quick pullback from a 2.5-week high of $8,830 this morning has invalidated a bullish breakout on the 4-hour chart.
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)
Oct 11, 2019 at 11:00 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/SCTPG5EO75EDRKE73KYJFG5PIQ.jpg)
Bitcoin is facing further losses after the bulls failed to capitalize on price gains seen this week.
The cryptocurrency's quick pullback from a 2.5-week high of $8,830 to below $8,400 this morning has invalidated a bullish breakout on the 4-hour chart seen Wednesday, as seen below.
4-hour chart
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/B3B4KFOXT5BWXHV4JEASWCIO7U.png)
The failure to hold above the 200-day moving average (MA) at $8,654 has also weakened the bullish outlook on the daily chart and may have shifted risk in favor of a drop to $8,000 in the next 24 hours.
Daily chart
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/VCWDPZRHTZGLZIK24SLUEMZ6QQ.png)
Bitcoin crossed the 200-day MA in the Asian trading hours on Friday and jumped to highs above $8,800, as expected. The breakout was short-lived, however, and prices fell from $8,820 to $8,356 in the 60 minutes to 06:00 UTC.
The failure to hold above the long-term average – a barometer of the long-term trend and a level which has acted as stiff resistance over the last two weeks – may embolden sellers, possibly leading to the deeper slide to $8,000.
A daily close above the 200-day MA is needed to revive the short-term bullish setup.
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.
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 consensus.coindesk.com to register and buy your pass now.