The Bitcoin price (BTC/USD) seems to be showing signs of buyer exhaustion following its big rally last week.
The original currency enjoyed some strong price action on Friday, when it managed to recapture the $12,000 level and signalled that it might be ready to renew its advance toward the $13,000 level. However, the coin has since been forced to endure poor trading, especially on Sunday, when its price dropped below the $11,000. Having opened at $11,91.99 on Sunday, BTC finished the day at $10,817.16, posting its first close below $11,000 since July 23.
The No. 1 digital coin has made multiple attempts to rebound on Monday, but it hasn’t been able to gain enough momentum to secure a stable position above $11,000. BTC rose to as high as $11,197.80 in the opening hours of the session, but, apart from a brief resurgence in late morning trading, it has since been moving on a mostly downward trajectory. Bitcoin’s decline accelerated significantly in recent trading, when it dropped sharply towards the $10,500 mark. At the time of writing, the Bitcoin price was hovering around the $10,660 mark, according to data from digital currency tracker Coinmarketcap.
According to a technical analysis from industry website Coindesk, the Bitcoin price decline could go even further. The online publication noted that the coin could drop below $10,000 this week, due to buyer exhaustion following last week’s surge to a near 18-month high of over $13,700.
“Essentially, BTC created a candle called “gravestone doji” on the weekly chart”, a pattern that typically signals that “buyers had pushed prices up to unsustainable levels during a specific period, then sellers ended up pushing prices back to the starting point”, Coindesk explained. A move above $12,450 would weaken the bearish scenario.
In today’s trading, the Bitcoin price stood at $10,660.41, as of 14:41 BST. The digital coin has lost 6.6% of its value in the past 24 hours. Its total market cap currently stands at $189.6 billion, which represents 61.2% of the combined value of all digital currencies.
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