Pullback Over? Bitcoin Bounces $600 From Historically Strong Price Support

Published on by Coindesk | Published on

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Bitcoin's bounce from the support of the 10-candle moving average on the three-day chart may have opened the doors for a retest of recent highs above $13,000.

A failure to hold above that support level would validate the bearish candlestick pattern seen on the daily chart and allow a drop to support at $10,769.

Bitcoin has bounced up from historically strong price support, raising the prospects of a renewed push toward recent highs above $13,000.

The move below $11,000 remained elusive with the cryptocurrency finding takers around the three-day chart 10-candle moving average support - then located at $11,150 - and rose to a high of $11,797 soon before the press time.

The $600 bounce from the 10-candle MA could be a sign the pullback from the weekly high of $13,200 has ended.

The 10-candle MA has consistently acted as strong support, reversing corrections throughout the rally from February lows near $3,500 to June highs near $13,800, according to Bitstamp data.

This year, BTC first found acceptance above the 10-candle MA on Feb. 9 and the technical line has acted as strong support ever since.

The 10-candle MA also fueled strong price gains in early May and June.

All-in-all, there is a strong reason to believe that the latest bounce from the 10-candle MA will be extended further toward recent highs.

The focus would shift back to the bearish outside reversal if prices fall back below the 10-candle MA, currently at $11,167.