Bitcoin Takes a Dive After the Longest Daily Winning Run

Bitcoin Takes a Dive After the Longest Daily Winning Run

Main Overview

 

  • Bitcoin’s ongoing pullback could be extended further to the former resistance-turned-support of $9,586. Acceptance below that would expose the next base at $9,188.
  • A UTC close below $9,075 (Feb. 4 low) would invalidate higher lows on the daily chart and confirm a short-term bearish reversal.
  • The case for deeper pullback would weaken if prices rise above $10,010, violating the bearish setup on the hourly chart.

Bitcoin is feeling the pull of gravity at press time, despite having confirmed its longest daily winning streak since September on Sunday.

The top cryptocurrency by market value dived from $10,197 to $9,732 during the Asian trading hours and is currently trading at $9,850, according to CoinDesk’s Bitcoin Price Index.

The sharp pullback has blanketed Sunday’s ascent from $9,900 to $10,180 and is suggesting bullish exhaustion.

Bitcoin closed out (UTC) Sunday with a 2.75 percent gain, having risen by 5, 1.4, 0.5 and 1 percent on Wednesday, Thursday, Friday and Saturday, respectively.

Bitcoin produced five straight green candles (days with net gains) from Aug. 30 to Sept. 3, marking a convincing move higher from $9,350 to $10,783. The rally, however, ended up recharging bears’ engines for a deeper slide.

The latest winning streak is preceded by a sharp rise from lows near $6,850 observed in early January. Such solid rallies are often followed by corrections.

Bitcoin could soon test dip demand by revisiting deeper support levels.

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