Bitcoin's (BTC) drop to five-day lows on Monday has likely emboldened the bears, technical studies indicate.
The leading cryptocurrency traded in a sideways manner over the weekend, neutralizing the immediate bullish outlook. However, the consolidation was expected to end with an upside break, as the short-term moving averages (MAs) turned bullish on Saturday, adding credence to positive relative strength index divergence (RSI).
Instead, BTC dived out of the trading range in the US session yesterday and fell to a low of $6,203 – the lowest level since Sept. 12 – indicating the corrective rally from the recent lows near $6,100 has likely ended at Friday's high of $6,600.
More importantly, the drop witnessed yesterday signaled a revival of the sell-off from highs above $7,400 seen earlier this month.
At press time, BTC is changing hands at $6,250 on Bitfinex – down 3 percent on a 24-hour basis.
View:
- BTC risks a downside break of the pennant pattern in the next 24 hours, having suffered a bear flag breakdown yesterday.
- A confirmation of the pennant breakdown could yield a sell-off to $5,755 (June low).
- On the higher side, $6,600 (Friday's high) is the level to beat for the bulls.
The leading cryptocurrency traded in a sideways manner over the weekend, neutralizing the immediate bullish outlook. However, the consolidation was expected to end with an upside break, as the short-term moving averages (MAs) turned bullish on Saturday, adding credence to positive relative strength index divergence (RSI).
Instead, BTC dived out of the trading range in the US session yesterday and fell to a low of $6,203 – the lowest level since Sept. 12 – indicating the corrective rally from the recent lows near $6,100 has likely ended at Friday's high of $6,600.
More importantly, the drop witnessed yesterday signaled a revival of the sell-off from highs above $7,400 seen earlier this month.
At press time, BTC is changing hands at $6,250 on Bitfinex – down 3 percent on a 24-hour basis.
View:
- BTC risks a downside break of the pennant pattern in the next 24 hours, having suffered a bear flag breakdown yesterday.
- A confirmation of the pennant breakdown could yield a sell-off to $5,755 (June low).
- On the higher side, $6,600 (Friday's high) is the level to beat for the bulls.