Hits One-Month Low
BTC: Price: $8,650 | Market cap: $158 billion | 24-Hr Volume: $49 billion
Trend: Bearish Bitcoin fell to one-month lows below $8,450 early Friday, erasing 50 percent of the rally from the December low of $6,452 to the recent high of $10,500.
At press time, the cryptocurrency is changing hands near $8,650. The minor bounce may be extended further toward $9,000 as indicators on the 4-hour and hourly charts are reporting oversold conditions.
The immediate bearish case would weaken if prices print a UTC close above $8,975 on Friday, confirming the seller exhaustion signaled by Thursday's doji candle. That would open the doors for the former support-turned-hurdle at $9,300.
However, if the ongoing bounce fails to take out $8,975 or fizzles out at current level, a fresh slide toward $8,213 (Jan. 24 low) could be seen, as the daily chart indicators are biased bearish.
The 14-day relative strength index is hovering below 50 and the MACD histogram is printing deeper bars below zero. The three-day chart MACD histogram has also crossed below zero, confirming a bearish shift in the momentum and validating the preceding big red marubozu candle. A red marubozu candle comprises a big body and small or no shadows. The candle indicates sellers were in control from the session's open to its close and is reflective of strong bearish sentiment.
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