Bitcoin (BTC) price could create a major bullish technical pattern in the next few days, technical charts indicate. At press time, BTC is changing hands at $6,350 on Bitfinex – down 3.6 percent on a 24-hour basis.
Indeed, the short-term bullish bias has become invalid following BTC’s close below (as per UTC) the 10-day moving average (MA) yesterday. Further, the risk of a deeper pullback to $6,000 (February low and psychological support) has increased after Tuesday’s 5.7 percent price drop.
However, that does not necessarily mean the BTC bears are back in a commanding position as the cryptocurrency is still holding well above the recent low of $5,755 (hit on June 24). Also, BTC could end up creating an inverse head-and-shoulders pattern (bullish pattern) if the bears fail to penetrate the immediate support of $6,000 in the next couple of days.
BTC’s drop to $6,260 yesterday left another lower high (bearish pattern) on the daily chart. The relative strength index (RSI) has rolled over in favor of the bears (is back below 50.00).
Further, the 5-day and 10-day MA are beginning to slope downwards in favor of the bears. The long-term MAs – 50,100 and 200 – are located one below the other, indicating the path of least resistance is to the downside. Read more from coindesk.com…
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