Bitcoin’s Price Eyes Consolidation After 11% Price Drop

Bitcoin (BTC) could be in for a minor bout of consolidation as the technical charts show indecision in the marketplace following an 11 percent drop from the recent highs above $8,500.

At press time, the cryptocurrency is trading at $7,600 on Bitfinex, having clocked a nine-day low of $7,469 earlier today.

A minor correction was overdue as BTC looked overbought a week ago at the two-month high of $8,507. However, things took a turn for the worse in the last 24 hours as BTC’s overlong sideways action ended with a downside break and further, the bargain hunters failed to turn up at the key support of $7,800.

As a result, the cryptocurrency ended up retracing more than 35 percent of the rally from the June 24 low of $5,755.

Clearly, the tide has turned in favor of the bears in the last 24 hours, although oversold conditions and indecisiveness seen in the short duration charts will likely keep the cryptocurrency range bound in the next 24 hours.

4-hour chart

The above chart shows BTC has created a doji candle at the key support of $7,455 (38.2 percent Fibonacci retracement), indicating indecision in the market.

A minor corrective rally to $7,800 could be on the cards if the current 4-hour candle closes above the previous doji candle’s high of $7,587. The relative strength index (RSI) is holding well below 30.00, signaling oversold conditions. So, this appears to be the most likely scenario.

That said, the gains will likely be short-lived as 5-candle and 10-candle moving averages (MAs) are trending south, indicating a bearish setup. Further, the cryptocurrency has found acceptance below the key support of $7,815 (July 27 low), meaning the bears are in control.

On the other hand, acceptance below the immediate support of $7,456 (38.2 percent Fibonacci retracement) would strengthen the bear case, although oversold conditions are seen capping losses around $7,400.


  • BTC is seen trading the narrow range of $7,400–$7,800 in the next 24 hours.
  • BTC’s bull run from the June 24 low of $5,755 has ended, but only a daily close (as per UTC) below the 100-day MA of $7,574 would confirm a bearish reversal.
  • On the higher side, a daily close (as per UTC) above $8,000 would shift risk in favor of a rally to 200-day (MA), currently located at $8,405.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; Charts by Trading View

The leader in blockchain news, 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.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

Join 10,000+ traders who come to us to be their eyes on the charts, providing all that’s hot and not in the crypto markets.

Author: Omkar Godbole

Source link

Related posts

20 Thoughts to “Bitcoin’s Price Eyes Consolidation After 11% Price Drop”

  1. Rafael Bawany

    It?s hard to come by knowledgeable people on this subject, however, you

  2. Alethea Caiazzo

    This is a impressive story. Thanks!

  3. Rodrigo Ringlein

    Don’t wear seat belts lest you drown in your own urine?

  4. Britt Miske

    With thanks! Valuable information!

  5. Shirley Zaman

    of writing i am as well delighted to share my know-how here with colleagues.

  6. Cyndy Plassmann

    I’m quite certain I’ll learn lots of new stuff right

  7. Raleigh Lemen

    With thanks! Valuable information!

  8. Marlon Kincer

    This is a impressive story. Thanks!

  9. Cindy Gaster

    Appreciating the commitment you put into your site and detailed information you offer. It’s nice to come across a blog every once in a while that isn’t the same old rehashed information. Fantastic read! I’ve saved your site and I’m including your RSS feeds to my Google account.

  10. Football Solutions Women's EURO - Eloisa Tavares

    Manchester United’s Rio Ferdinand has slammed Barcelona’s play-acting antics against Real Madrid in their Champions League clash and backed Jose Mourinho. Rio backs Jose as United defender slams Barcelona and diving star Pedro

  11. Ailton strike spurs on Schalke

    MARTIN SAMUEL – CHIEF SPORTS WRITER: When the right moment came, Sir Alex Ferguson vacated the touchline at the top, and on his terms. Now, the world of football is hoping he pulls through. Sir Alex Ferguson is still at the pinnacle of the game. Now, we hope for one final comeback…

  12. dabiskais kolagens

    … [Trackback]

    […] Info on that Topic: […]

  13. escort girls

    … [Trackback]

    […] Read More on to that Topic: […]

  14. buy psilocybin mushrooms online

    … [Trackback]

    […] Find More Information here on that Topic: […]

  15. check it out

    … [Trackback]

    […] There you will find 16297 additional Info on that Topic: […]

  16. sportsbet

    … [Trackback]

    […] Read More here to that Topic: […]

  17. hillapple

    … [Trackback]

    […] Find More Information here on that Topic: […]

  18. sbobet

    … [Trackback]

    […] Information to that Topic: […]

  19. 토토샤오미

    … [Trackback]

    […] Find More Information here to that Topic: […]

  20. read this article

    … [Trackback]

    […] There you can find 53628 additional Information to that Topic: […]

Leave a Comment