Having failed to scale a major resistance level on Monday, bitcoin (BTC) fell below the $11,000 mark soon before press time. CoinDesk’s Bitcoin Price Index (BPI) rose to an intraday high of $11,660 yesterday, yet closed the day (as per UTC) below the inverse head-and-shoulders neckline resistance of $11,600.
The failure to hold above the critical resistance has not gone down well with the market as the cryptocurrency fell to a low of $10,890 today. The rejection at the inverse head-and-shoulders neckline resistance and today’s break below $11,000 look to have weakened the bull case on the technical charts, and a major positive move looks increasingly unlikely in the short-term.
The above chart (prices as per Bitfinex) shows: So, yesterday’s price action highlights exhaustion near the all-important resistance. Meanwhile, the 4-hour chart below signals scope for a drop to $10,900-$10,600.
Having faced rejection above $11,600, BTC fell below trendline support, while the relative strength index (RSI) has breached the horizontal trendline support. As of writing, BTC is trading around the 4-hour 50 MA and could soon extend losses to $10,675.
The 5-day moving average (MA) and 10-day MA are sloping upwards in favor of the bulls. However, the 50-day MA is still pointing bearishly down. Read more from coindesk.com…
thumbnail courtesy of coindesk.com