Bitcoin price gained 2.25% today, rising to 7,957 USD as of 14:25 GMT. The cryptocurrency recovered slightly after another retreat during the weekend, when fell to 7,500 USD area. However, the cryptocurrency fails to conquer the 8,000 USD resistance, after losing the area on June 4.
Within the last seven days, the Bitcoin price has fallen by over ten percent, which has led technical analysts in the crypto market to ponder about the possibility of an extended pullback despite the market’s positive macro landscape. Throughout the past four years, bitcoin has demonstrated a tendency to experience a pullback of 30% on average following an extended rally.
According to analysis, every-time BTC has touched 92-95 RSI on the 3D chart since 2015, price dumps over 30% over the following months, before continuing onward. We touched the same RSI range recently. That would imply a touch to at least 6,500 USD if so. The past performance or trend of an asset is no guarantee of the future performance of the asset, especially in the case of major crypto assets as the structure of the market has evolved significantly since 2016.
However, considering that the Bitcoin price is still up by more than 100% year-to-date against the US dollar, by nearly three-fold at its yearly peak, strategists generally agree that a pullback would be healthy for the market.
Traders have started to observe the low 7,000 USD region as a potential target of re-entry amidst an ongoing short-term correction in the crypto market.
Bitcoin price analysis
Bitcoin’s bulls need to keep prices above key support at 7,432 USD to avert a short-term bearish reversal. At the current price of 7,957 USD, the leading cryptocurrency by market value is down 12% from the May 30 high of 9,097 USD – the highest level since the same month in 2018
The double-digit price drop has spurred fears of a trend reversal. After all, prices have found acceptance below the crucial 30-day price average. Further, key technical indicators are flashing signs of bullish exhaustion.
Even so, it is still too early to call a bearish reversal as Bitcoin is yet to confirm the most basic of all bearish chart patterns, a paired lower high and lower low. A lower high has been established, though, with the bounce from the June 4 low of 7,432 USD topping out at 8,135 USD on June 7.
Therefore, the immediate outlook is neutral and a bearish reversal would only be confirmed if BTC drops below 7,432 USD to print that lower low.
With the price currently trading at 7,957 USD, the short-term bullish-to-bearish trend change is less than 500 away.
Crypto market recap
The main cryptocurrencies are trading mostly into the green today with Bitcoin adding 2.25% after the collapse during the weekend.
Ethereum is up by 1.87%. Bitcoin Cash and EOS added 1.8% and 2.4%, respectively.
Litecoin jumped by 8.5% to 126.03 USD. Besides, the prevailing trend in is strongly bullish. The volatility of Litecoin on the lower side which means that we can expect minor deeps in the event 130 USD is not assaulted.
Cardano, DASH and IOTA gained more than 3%, having a strong performance during the day.
However, XRP and Bitcoin SV were into the red, falling by 0.9% and 1.2%, respectively.
The total cryptocurrency market value rose to 253.912 USD, but still more than 20 billion less than the peak at the end of May.