Bitcoin Bears In Charge But Indecision Could Spur Rally

While the odds are still stacked in favor of bitcoin’s bears, a level of indecision looks to be creeping in, according to the technical charts.

The cryptocurrency fell to a 6.5-week low of $7,142 on Bitfinex earlier today, having breached the 50-week moving average (MA) support for the first time since 2015.

Amid the continued drop in prices, though, the charts show a doji candle formed yesterday, indicating that the bears may be running out of steam and a short-term rally could be on the cards.

Bitcoin Bears In Charge But Indecision Could Spur Rally
Bitcoin Bears In Charge But Indecision Could Spur Rally

As of writing, BTC is changing hands at $7,210 – down 16.58 percent from the last Monday’s high of $8,644.

4-hour chart

The pennant breakdown, a bearish continuation pattern, on the 4-hour chart indicates the sell-off from the last Monday’s high of $8,644 has resumed and opened the doors to $6,800 (target as per the measured height method: pennant range subtracted from breakout price).

The 50-candle, 100-candle, and 200-candle moving averages (MAs) are aligned in favor of a further drop in prices.

Daily chart

On the daily chart, the 5-day and 10-day MAs are trending south, indicating a short-term bearish setup. A series of lower highs and lower lows also indicates the bears are in control.

The relative strength index (RSI) is holding slightly above 30.00, signaling just enough room for another $200 drop in BTC prices.

Weekly chart

The first weekly close below the 50-week MA in nearly three years only validates the argument that the long-term bull market has ended.

The relative strength index (RSI) has also rolled over in favor of the bears, while the 5-week MA is set to cross the 10-week MA from above, signaling a bearish crossover.

Clearly, BTC is on the defensive, still, there is merit in being cautious as the cryptocurrency created a small doji candle on Sunday (as seen in the daily chart) at the key 76.4 percent Fibonacci retracement level of $7,209, indicating bear indecision in the marketplace. Thus, a minor corrective rally could be in the offing if bitcoin posts gain today (bullish doji reversal).


  • BTC looks set to test the psychological support of $7,000. Acceptance below that level would expose the April 1 low of $6,425.
  • An unexpected close today (as per UTC) above $7,425 (doji candle high) would confirm a short-term bullish doji reversal and allow a minor corrective rally, possibly to $7,800–$8,000.
  • Only a convincing move above the weekly 50-MA would abort the bearish view. Meanwhile, a break above $9,990 (May 5 high) would imply a bullish reversal.

Chart image via Shutterstock

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