View.Bitcoin's daily money flow index has turned bearish, supporting the case for deeper a price pullback put forward by Wednesday's bearish engulfing candle.
A violation there would expose the higher low created at $9,074 on Feb. 4.A move back above a short-term moving average at $9,800 would weaken the bearish mood, while a bearish channel breakout on the 4-hour chart is needed to put the bulls back into the driver's seat.
Bitcoin's lackluster recovery from price support around $9,400 is struggling to gather upside traction amid bearish developments on the short-term technical charts.
Sellers failed to keep prices below the widely tracked 200-candle average support on the 4-hour chart.
So far the repeated defense of that level has failed to yield a notable price bounce, leaving the cryptocurrency below the resistance of the 5-day average at $9,750.
A significant recovery may remain elusive, as the daily chart's money flow index, a momentum indicator that incorporates both price and trading volumes, is suggesting increased selling pressure with a below-50 reading.
At press time, bitcoin is changing hands at $9,710 on Bitstamp and its global average price, as calculated by CoinDesk's Bitcoin Price Index, is seen at $9,721 - up 0.87 percent over 24 hours.
The MFI has found acceptance in bearish territory below 50, validating a major bearish engulfing candle created on Feb. 19.
Further, bitcoin is trading within a descending bearish channel on the 4-hour chart.
A sustained break above the 5-day average at $9,755 would neutralize the bearish bias.
Bitcoin Chart Indicator Flips Bearish as Price Sees Weak Bounce From $9.4K
Published on Feb 21, 2020
by Coindesk | Published on Coinage
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