Summary:
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Bitcoin trading lower by around 4%
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Market failed to breach prior high near 8450
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Possible double top forming
Last week began with a bang for the cryptocurrency markets, with large gains seen across the board and calls began to grow that the moves were just the beginning of another sustained rally similar to the one which occurred back in 2017. Bitcoin, which remains the clear market leader in the space, had more than doubled in value in just over a month and the parabolic nature of the rise was particularly noteworthy.
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After leading the way higher, Bitcoin is now pulling back with the market actually lower on the past week and back below the $7800 level. Source: xStation
However, any over enthusiasm has since been checked somewhat, with price running into resistance around the 8450 region - an area which also capped an advance last July. This region has been retested again this morning and once more there wasn’t sufficient buying pressure to clear it and now the shorts have an opportunity to regain some lost ground. Another point worth making is a clear divergence between the RSI and price in recent trade with the oscillator falling lower even as price has made this second attempt of late at 8450. This could be seen as a sign of momentum on the wane. 6775 could be seen as a level to watch on the downside but if the bears can push the market back below there then a retest of the breakout level at 5580 could be in store. A break above 8450 would allow longs to target further upside towards 10k.
Bitcoin is pulling with a clear divergence seen in the RSI. 6775 and 5580 are levels to watch below if this continues. Source: xStation
