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August 30, 2018 @ 20:13 +03:00
Bitcoin (BTC) bulls need to defend key support at $6,905 to avoid invalidation of the short-term bullish outlook, technical charts suggest. Having hit a peak of $7,139 Wednesday, the leading cryptocurrency is currently trading around $6,920 on Bitfinex – down 2 percent on a 24-hour basis. The drop does not come as a surprise, however, as the 21 percent rally witnessed in the last two weeks was looking overstretched yesterday. More notably, the short-term bull case would weaken if BTC finds acceptance below the 100-day moving average (MA) of $6,905.
Hence, the bulls need to defend the 100-day MA of $6,905 to keep the short-term bullish outlook intact. That may be a tough call, though, as the short duration charts are pointing to an increased risk of further losses. As seen in the above chart, BTC has breached the rising trendline in favor of the bears. Further, the relative strength index (RSI) has taken out the ascending trendline support. As a result, the emboldened bears may push the cryptocurrency down to the ascending (bullish) 50-candle MA, currently located at $6,735.