After a period of strengthening bull indicators over the last three weeks, the technical charts have now shifted toward the bears.
As seen in the above chart, the last hourly candle confirmed a downside break of the rising wedge pattern, signaling an end of the technical recovery.
The RSI is aligning with the bears, having dipped below 50.00.
Over on the daily chart, BTC suffered a rising wedge breakdown on Wednesday, indicating the rally from the Aug. 14 low of $5,859 has ended and the bears have regained control.
Further, the negative price action yesterday bolstered the bearish setup.
Investors should also keep an eye on the line chart, as a pennant breakdown would boost the odds of BTC ending the week below $6,000.
View BTC could find acceptance below $6,300 and may drop further towards the crucial support of $6,000 over the weekend.
A weekly close below $6,000 would signal a revival of the long-term bear market.
On the higher side, a technical recovery is seen above $6,550, although with key intraday MAs trending south, gains may not be sustainable.
Bitcoin chart image via Shutterstock; Charts by Trading View.
$6K Ahead? Bitcoin Price Plunges After Brief Recovery
gepubliceerd op Sep 7, 2018
by Coindesk | gepubliceerd op Coinage
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