Bitcoin has moved back above $8,000 as a widely followed long-term indicator turns bullish for the first time in over a year.
Bitcoin dived out of a narrowing price range on Wednesday, opening the doors for a deeper drop to $7,200.
Bitcoin is teasing a downside break of its recent trading range, having again faced rejection above $8,000 today.
Bitcoin has failed three times in seven days to find acceptance above $8,300, raising the risk of a notable short-term correction.
Bitcoin has registered double digit gains for three consecutive weeks – a feat last seen at the height of the bull market in 2017.
Amid extremely overbought conditions, bitcoin has fallen by $1,700 on Friday – its biggest intraday price drop since January 2018.
The litecoin cryptocurrency was trading in the triple digits earlier on Thursday for the first time since last June.
Bitcoin is facing a price correction to well below $8,000, as exhaustion leaves the bulls unable to hold onto fresh 10-month highs hit earlier today.
With bitcoin's rally showing signs of exhaustion above $8,000, investors have started pouring money into relatively cheap alternatives.
Bitcoin clocked fresh 10-month highs earlier today and currently appears on track to post its biggest monthly rise since late 2017.