Bitcoin’s recent struggles may be pointing to exhaustion of the bullish trend industry website Coindesk has noted in a recent technical analysis.
The original cryptocurrency has struggled to secure a stable position above $8,000 ever since it recaptured that price level on May 13. The $8,300 mark has so far proven to be a significant challenge for the coin.
“Bitcoin risks a price pullback in the short-term, given the signs of bullish exhaustion around $8,300,” Coindesk wrote earlier today, pointing out that BTC had failed three times in seven days to find acceptance above the $8,300 level.
In case of buyer exhaustion, the Bitcoin price could pull back to $7,200-$7,000 in the next couple of days. Furthermore, if BTC closes below the $7,581 it would face the risk of dropping below the 30-day moving average, currently at $6,333. However, the “case for a pullback would weaken if BTC settles above $$8,200 today”, Coindesk said.
Bitcoin has amassed big gains over the past few weeks, thanks to an improved market sentiment, as well as a series of positive news, including reports about Facebook’s and Fidelity Investments’ crypto plans. Since the beginning of this year, the digital coin has more than double its value, gaining nearly 50% this month alone. The coin already saw one big correction last week – when it fell to as low as 7,038.12 following its surge to a near 10-month high of $8,320.82 on May 16 – but it was able to recover in the following days
In today’s trading, the Bitcoin price stood at $7,942.25, as of 16:24 BST. The digital coin has gained 1.8% in the past 24 hours, according to data from digital currency tracker Coinmarketcap. The coin’s total market capitalisation currently stands at $140.7 billion, which represents 56.6% of the combined value of all digital currencies.
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