Drop to $9K Still in Play Despite Brief Bitcoin Rally

Despite a short rally yesterday, bitcoin (BTC) continues to be in corrective mode and dangers falling again under $9,000, chart evaluation suggests.

The cryptocurrency broke out of the bearish falling channel setup yesterday, courtesy of a bullish relative power index (RSI) divergence – indicating the pullback from the latest excessive of $9,990 had ended at $eight,980 (yesterday’s low).

The breakout additionally raised the prospects of a stronger transfer in the direction of $9,767 (April 25 excessive) and presumably even the $10,000 mark.

Nonetheless, the ascent has been reduce quick round $9,380 in the final 15 hours, as seen in the chart under.

Hourly chart

As of writing, bitcoin is trying a break above $9,380 on Bitfinex, above which a significant resistance is seen at $9,442 – the 200-hour transferring common (MA). In the meantime, a powerful assist is seen at $9,228 (marked by a circle).

The momentum research are biased bearish. As an illustration, the 100-hour MA is trending south in favor of the bears and the 50-hour MA continues to be regularly descending (but to backside out or shed bearish bias).

In consequence, a convincing transfer above $9,442 might be a tricky process.

Additional, the short-term transferring averages in the each day chart under have rolled over in favor of the bears.

Day by day chart

The bearish crossover between the 5-day MA and the 10-day MA signifies a short-term (5 days) bullish-to-bearish pattern change. It additionally signifies the pullback from the latest excessive of $9,990 has not run its course.

View

  • A break under $9,228 (assist on the hourly chart) would add credence to the bearish 5-day MA and 10-day MA crossover and open the doorways for a drop to $eight,980 and $eight,868 (100-day transferring common).
  • A each day shut (as per UTC) under $eight,652 (April 26 low) would verify a bearish reversal.
  • On the upper aspect, a each day shut (as per UTC) above the 10-day MA (presently situated at $9,452) would sign the tip of the pullback from the latest excessive of $9,990.

Arrows picture through Shutterstock

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