Bitcoin Eyes Bear Revival After Key Support Breached

Bitcoin's bears have seized the upper hand and forced a rising wedge breakdown, the technical charts indicate.

AccessTimeIconJun 22, 2018 at 10:05 a.m. UTC
Updated Aug 18, 2021 at 9:21 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Bitcoin's (BTC) bears may be building for a strong comeback, having pushed prices to a eight-day low below $6,300 earlier on Friday.

The price fell to $6,286 on Bitfinex at 09:50 UTC, the lowest level since June 14, and, at press time, was changing hands at $6,326, down around 6 percent over 24 hours.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • As discussed yesterday, the cryptocurrency's persistent failure to scale the $6,800 mark in a convincing manner had raised the prospects of another leg down in bitcoin prices.

    It seems that process is now underway. Bitcoin breached the key support of $6,620 a couple of hours ago – signaling that the relief rally from the June 13 low of $6,108 has ended at $6,850 (June 18 high) and the bears have regained control.

    The technical charts now indicate scope for a drop below $6,000 over the weekend.

    4-hour chart

    BTC's drop below $6,620 has confirmed a rising wedge breakdown – a bearish reversal pattern indicating the corrective rally has ended and the broader bearish trend has resumed.

    The stage is now set for a drop to $5,090 (target as per the measured height method, i.e. pole height subtracted from breakdown price).

    The target looks feasible as the long-term technical charts are also biased to the bears.

    Weekly chart

    download-4-17

    As seen above, the pennant breakdown confirmed earlier this month opened up downside towards 100-week moving average (MA), currently located at $4,551.

    Meanwhile, the bearish crossover between the 5-month and 10-month moving averages (MAs) also favors a convincing break below the immediate support of $6,000 (February low).

    View

    • BTC will likely find acceptance below the immediate support of $6,000 (February low) over the weekend, and could drop to $5,090 (target as per the measured height method) over the next couple of weeks.
    • A daily close (as per UTC) above $6,850 (June 18 high) would abort the immediate bearish view.
    • A high volume break above the 50-week MA, currently located at $6,958 would signal long-term bearish invalidation.

    Bitcoin image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.