$400 Drop: Bitcoin Faces Correction After Rejection at Price Hurdle

$400 Drop: Bitcoin Faces Correction After Rejection at Price Hurdle 1

Bitcoin could be staring deeper losses, having faced rejection at key price hurdle on Thursday.

The top cryptocurrency by market value was seeing bids around $10,400 during the Asian trading hours. Buying interest weakened after the cryptocurrency failed to stay above Wednesday’s high of $10,500 and prices fell sharply to $10,077 around 08:30 UTC.

Bitcoin is currently trading near $10,200, representing a 1 percent drop on a 24-hour basis, according to CoinDesk’s Bitcoin Price Index.

Overall, the trend remains bullish, with prices still up 42 percent on a year-to-date basis and trading well above the 200-day average at $8,867. However, the $400 drop seen earlier is suggestive of buyer exhaustion, as it was preceded by repeated failure at $10,500 and accompanied by an overbought reading on the money flow index.

As a result, deeper correction to levels below $10,000 cannot be ruled out.

Wednesday’s green candle has been engulfed bearishly by today’s retreat from $10,500 to $10,077.

Alongside that, the RSI has produced a lower-highs pattern over the last three days, contradicting the higher highs on price – a bearish divergence that often precedes notable corrections.

Bitcoin charted multiple 4-hour candles with long upper wicks in the last 24 hours, indicating bull fatigue in the range of $10,400-$10,500.

The downward move seen at press time has confirmed the weakening of bull momentum and shifted risk in favor of a slide to the ascending trendline support, currently located near $9,900. That level is also housing the ascending 50-candle moving average.

Supporting the case for a correction is the lower highs (negative divergence) on the relative strength index. Additionally, the MACD histogram is about to cross below 50 in favor of the bears.

If the ascending trendline support caves in, a further decline toward $9,706 could be seen. That level is crucial as it marks the low of a major bullish engulfing candle created Feb. 11.

The bulls would breathe a sigh of relief if the trendline support holds and, if so, would likely mount another charge on $10,500. The overall trend will remain bullish as long as prices are holding ground above $9,075 (Feb. 4 low) keeping the higher-lows setup intact.

Disclosure: The author holds no cryptocurrency at the time of writing

Disclosure Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin33,652 0.12 % 5.42 % 21.96 %
Ethereum2,201.0 0.87 % 10.64 % 34.42 %
Tether1.010 0.33 % 0.82 % 0.55 %
Binance Coin342.92 0.33 % 10.05 % 31.22 %
USD Coin1.010 0.26 % 0.82 % 0.53 %
Cardano0.9870 1.36 % 11.49 % 29.96 %
XRP0.5666 0.11 % 8.27 % 27.30 %
Solana84.33 0.38 % 14.97 % 42.99 %
Terra62.00 1.44 % 8.30 % 28.75 %
Polkadot16.29 0.12 % 11.86 % 41.26 %

bitcoin
Bitcoin (BTC) $ 33,350.00
ethereum
Ethereum (ETH) $ 2,191.48
tether
Tether (USDT) $ 0.999569
binance-coin
Binance Coin (BNB) $ 340.51
usd-coin
USD Coin (USDC) $ 0.99703
cardano
Cardano (ADA) $ 0.965112
xrp
XRP (XRP) $ 0.562357
solana
Solana (SOL) $ 82.23
terra-luna
Terra (LUNA) $ 60.69
polkadot
Polkadot (DOT) $ 16.09