Bitcoin’s bullish reversal appears to be in peril as bears unexpectedly rocked up and grabbed the bull by the horns. Is today’s pullback caused by current events or are fundamentals impacting Bitcoin price?
Weekly Chart
4 Hour Chart
Running bulls appear to be halted by bears as a lower high was notched on the weekly chart. A clear pattern of lower highs and lower lows can be seen on the 4-hour and hourly chart. Yesterday’s abrupt drop to $7,860 was followed by an equally surprising recovery to $8,130 and, after a weekend of tightly range-bound trading, some drastic move to either the upside or downside was expected.
Some would say the writing was on the wall as a closer look at the 4-hour chart reveals that Bitcoin was in danger as it dropped far below the lower arm of the Bollinger band indicator before Bitcoin recovered to $8,130 then increasingly pushed against and fell below the lower band again as the day progressed. At the time of writing, BTC 00 sits slightly below the 100-day MA and further decline could lead to a dip below the 20-day MA. Both the Stoch and RSI have slid into oversold territory and the short-term bullish trend appears to have reversed.
