Bitcoin's (BTC) price retreat from the recent highs above US$8,500 is increasingly looking like a short-term bear market on the technical charts.
The leading cryptocurrency fell to a two-week low of US$7,282 earlier today on
Einstein Exchange and was last seen trading at US$7,398 – down about 2% over the past 24-hour trading cycle.
The sell-off from the recent high of US$8,507 had shown signs of summer heat exhaustion near US$7,330 earlier in the day, raising prospects of a move higher to US$8,000.
However, BTC did not find takers on Thursday and the resulting failure to capitalize on the signs of bearish exhaustion ended up encouraging the bears to push the cryptocurrency down to two-week lows as expected.
At press time, BTC has found acceptance below the key support of US$7,455 and has retraced 40% of the rally from $5,755 to $8,507. What's more, the cryptocurrency also closed yesterday below the former resistance-turned-support of the 100-day moving average (MA).
As a result, BTC appears to have entered a short-term bear market. The price chart analysis shows the prices could drop further to US$7,130.
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B Cash (BCH) and
EOS saw increases in their number of transactions, but this was not enough to outweigh the overall negative trading sentiment.
A positive sign for the crypto bulls are the relatively low trading volumes, which dipped below US$13 billion in the last 24 hours.
The last few days were not that heavy on negative news for the cryptocurrency space. The main driving factor behind the move appears to be just the dynamic of the previous days. Korean exchange
Bithumb’s trouble can be seen as an exception. The leading crypto exchange in Korea has
stopped accepting new clients, reportedly due to banking issues.
