Bitcoin Suffers Biggest Intraday Price Drop for Over a Year

View Bitcoin tanked by $1,702 early on Friday, the biggest intraday drop since January 2018.

A bounce to $7,619, if any, could be short-lived with prices falling back to $6,178 over the weekend, as both the 4-hour and daily charts are biased bearish.

A bounce from the historically strong support of the 30-day moving average at at $5,986 would imply an end to the price pullback.

Amid extremely overbought conditions, bitcoin has fallen by $1,702 - its biggest intraday price drop since January 2018.

The cryptocurrency market leader nosedived from the day's opening price of $7,880 to a seven day low of $6,178 on Bitstamp in the Asian trading hours.

Bitcoin has recovered more than 50 percent since the low hit earlier today.

Just before press time, its price is still down around 8.2 percent on the day at $7,223.

Bitcoin created a bearish outside day candle on Thursday, a sign of bullish exhaustion, validating a divergence of the RSI. That resulted in a slide to today's low of $6,178.

The pullback may not be over yet and we could revisit lows seen today over the weekend.

At press time, the 30-day MA is located at $5,986 and is seen moving above $6,000 over the next couple of days.