BTC/USD:Price: $10,300 | MCAP: $187 billion | Maximum Loss: Nil
Why we were intrigued:
Bitcoin jumped above $10,000 on Thursday, weakening the case for an immediate drop below the May 31 high of $9,097 (Bitstamp prices).
While the bull move was impressive, it did little to change the overall bearish outlook. This is due to the fact that the cryptocurrency closed yesterday at $10,648, leaving the crucial resistances of $10,759 (monthly opening price) and $10,850 (daily chart resistance) intact, as tweeted by popular analyst Josh Rager.
More importantly, the move fizzled out well ahead of $11,080, keeping the bearish lower highs pattern valid on the 4-hour chart. Also, prices repeatedly struggled to cross the descending 50-candle moving average (MA) resistance on the 4-hour chart throughout the Asian session.
Further, the 50-candle MA dropped below the 200-candle MA, confirming a bearish crossover. So, the analyst called a pullback to $10,000 earlier today when the cryptocurrency was trading at $10,673.
As expected, prices began falling and hit a low of $10,226, before bouncing quickly to our entry price of $10,670. With BTC showing signs of life, the CoinDeskDojo members were asked to unwinding their shorts at cost.
The reason for the sudden spike is still unclear. however, the move back to $10,670 was short-lived, possibly due to the news that that the U.S. Commodity Futures Trading Commission (CFTC) is probing BitMEX, which offers trading of cryptocurrencies with up to 100-times leverage and products such as futures and swaps, over whether it allowed Americans to use its platform.
All-in-all, the outlook is still bearish and the cryptocurrency could drop below $10,000 in the next few hours.