Bitcoin market has had a bullish start to the week, but the momentum could wane in the next few days, technical studies indicate.
The leading cryptocurrency rose to a fresh two-month high of $8,130 on Bitfinex today, having witnessed an inverse head-and-shoulders breakout last week.
Further gains could be on the cards, albeit after a brief pause or a price pullback as a key technical indicator is flashing overbought conditions.
As a result, the cryptocurrency may find it hard to gain a foothold above the immediate resistance of $8,140 in the next few days and could see a minor price pullback.
The cryptocurrency has found acceptance above the 50-day MA and 100-day MA. Meanwhile, the short duration charts are also calling a further price rally.
Accordingly, the attention has now shifted to the significant price obstacle of 200-day MA, currently located at $8,676.
View BTC's break above $8,000 has bolstered the already bullish technical setup overbought conditions could cap the upside around $8,150 in the next few days.
A pullback to ascending 10-day MA, currently $7,570 and seen sloping upwards to $7,700 in the next 48 hours, cannot be ruled out and will likely end up refueling the BTC freight train for a sustained move towards the 200-day MA of $8,676.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Indicator Suggests Bitcoin's $8K Rally Is Overstretched
Published on Jul 24, 2018
by Coindesk | Published on Coinage
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