05-23-2019, 08:26 PM
(05-16-2019, 06:10 PM)Ziddi123 Wrote: Bitcoin (BTC) could be in for a price correction, as exhaustion leaves the bulls unable to hold onto fresh 10-month highs hit earlier today.
The cryptocurrency market leader jumped to $8,390 on Bitstamp at 1:00 UTC, the highest level since July 25, 2018. However, the rise was short-lived as expected, with prices falling back to $7,740 within the last hour. As of writing, BTC is changing hands at $7,840, representing a 2 percent drop on a 24-hour basis.
Essentially, the cryptocurrency has failed twice in the last 48 hours to keep gains above $8,300, which validates the extreme overbought conditions reported by the widely followed relative strength index (RSI).
While the pullback from highs above $8,300 on May 14 was reversed by the 50-hour moving average (MA) support, the latest fall has taken prices below that line. As a result, a deeper correction is looking increasingly likely.