The price of Bitcoin (BTC) is traded indecisively after touching the 19-day lows below $ 6,900 on Sunday, but it could pick up an acceptance offer above $ 7.100, indicate technical studies.
The leading cryptocurrency fell to $ 6,890 Bitfinex yesterday – the lowest level since July 17 – before the end of the day (as per UTC) on a flat note at $ 7.025.
The price action indicates indecision in the market, but it could also be considered a sign of bearish exhaustion as the market appears undecided after a slide of 21% from the recent high of $ 8,507.
Now if the bulls are able to push prices above the Sunday high of $ 7.090, then the sell-out between sellers would be confirmed. On the other hand, a slip below the previous day's low of $ 6.890 would only make things worse for the cryptocurrency.
At press time, BTC trades at $ 6.975 – down 0.80 percent on a 24-hour basis.
The chart above shows, BTC created a Sunday doji candle (indecision) to support 50-day moving average (MA), making today's closing (as for UTC) crucial.
A reversal of the bull would be confirmed if the BTC were to close today (as per UTC) above $ 7.090 (the peak of the Sunday doji candle). In this case, a 100-day MA corrective rally could be seen, currently located at $ 7474.
Meanwhile, a closing (as per UTC) below $ 6.890 (the low Sunday doji candle) would signal a continuation of the sale off the July high of $ 8,507.
In addition, the bulls must soon capitalize the signs of indecision or exhaustion bearish, otherwise, the focus would shift rapidly on the bearish factors: 5 days downhill and 10 days down MA, violation of the key support of the MA of 100 days last week and a bearish relative strength index (RSI).
In addition, the close proximity of BTC to the impressive support of the reverse head-shoulders neckline (previous resistance) of $ 6.820 is another big reason why the bulls have to make a quick comeback.
A break below $ 6.820 would invalidate the bearish-bearish trend reversal confirmed by reverse head and shoulders reversal on July 17 and shift the risk in favor of a fall below the rising trendline (yellow dotted line).  In any case, the long-term bullish point of view was invalidated yesterday by the BTC to $ 7.025, as seen in the following table.
The BTC closed above the declining channel resistance in the previous week, confirming a long-to-bullish downtrend. However, the breakout ended up being a trap when the cryptocurrency re-entered the channel last week, invalidating the long-term bullish prospect.
- BTC could go back to 100 days MA of $ 7,474 if prices close today above $ 7,090. That said, the short-term prejudice would remain bearish as long as the 5-day and 10-day MAs will head south.
- A closing today below $ 6,890 would increase the risk of a decline below the key growing trendline support, currently seen at $ 6,700.
Disclosure: The author does not hold cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; Graphs of Trading View
This article is intended as news to inform our readers of various events and developments that influence, or could influence in the future, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and does not provide, sufficient information to form the basis for an investment decision, and you should not rely on such information for this purpose. The information presented here is accurate only at the date and has not been prepared by a research analyst or other investment professionals. You should look for more information about the merits and risks of investing in any cryptocurrency before deciding to buy or sell such instruments.
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