A close below $4,912 on Sunday would validate the previous week's doji candle and allow a deeper price pullback.
Bitcoin could challenge the recent high above $5,450 if sellers again fail to keep prices below $5,200.
Bitcoin's three-day run of slight gains is showing signs of exhaustion on the short-term technical charts, yet strong support below $5,190 has meant a pullback has remained elusive - so far.
Further, price closed above the stiff resistance of the 100-candle moving average yesterday, signaling a continuation of the rally from April 2 lows below $4,200.
This is evident from the fact that bitcoin has established new support just below $5,200 over the last 72 hours, despite persistent price-negative developments like bearish patterns and indicator divergences on the shorter-duration charts.
Notably, the $5,180-$5,170 range has put a floor under bitcoin's price for the second time in the last 72 hours.
As a result, if the bears can pull off a break below $5,170, it may invite strong selling pressure and open the doors for a deeper price pullback, possibly to $5,000.
The case for a price pullback looks stronger if we take into account the fact that acceptance below $5,170 would also confirm a head-and-shoulders breakdown - a bullish-to-bearish trend change.
Sellers would need to act quickly, as another strong bounce from levels below $5,200 could entice buyers and lead to a sustained move toward the recent highs above 5,450.
The buyer exhaustion signaled by the doji would gain credence if the price settles below the candle low of $4,912 on Sunday, possibly leading to a deeper correction next week.
Bitcoin Clings on Above Key Support Amid Signs of Price Pullback
Published on Apr 19, 2019
by Coindesk | Published on Coinage
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