Share this article
Bitcoin Eyes Bear Revival After Key Support Breached
Bitcoin's bears have seized the upper hand and forced a rising wedge breakdown, the technical charts indicate.
Updated Sep 13, 2021, 8:05 a.m. Published Jun 22, 2018, 10:05 a.m.
Make us preferred on Google
Bitcoin's bears may be building for a strong comeback, having pushed prices to a eight-day low below $6,300 earlier on Friday.
The price fell to $6,286 on Bitfinex at 09:50 UTC, the lowest level since June 14, and, at press time, was changing hands at $6,326, down around 6 percent over 24 hours.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
As discussed yesterday, the cryptocurrency's persistent failure to scale the $6,800 mark in a convincing manner had raised the prospects of another leg down in bitcoin prices.
It seems that process is now underway. Bitcoin breached the key support of $6,620 a couple of hours ago – signaling that the relief rally from the June 13 low of $6,108 has ended at $6,850 (June 18 high) and the bears have regained control.
The technical charts now indicate scope for a drop below $6,000 over the weekend.
4-hour chart
BTC's drop below $6,620 has confirmed a rising wedge breakdown – a bearish reversal pattern indicating the corrective rally has ended and the broader bearish trend has resumed.
The stage is now set for a drop to $5,090 (target as per the measured height method, i.e. pole height subtracted from breakdown price).
The target looks feasible as the long-term technical charts are also biased to the bears.
Weekly chart
As seen above, the pennant breakdown confirmed earlier this month opened up downside towards 100-week moving average (MA), currently located at $4,551.
Meanwhile, the bearish crossover between the 5-month and 10-month moving averages (MAs) also favors a convincing break below the immediate support of $6,000 (February low).
View
- BTC will likely find acceptance below the immediate support of $6,000 (February low) over the weekend, and could drop to $5,090 (target as per the measured height method) over the next couple of weeks.
- A daily close (as per UTC) above $6,850 (June 18 high) would abort the immediate bearish view.
- A high volume break above the 50-week MA, currently located at $6,958 would signal long-term bearish invalidation.
Bitcoin image via Shutterstock
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Circle’s biggest bear just threw in the towel, but warns the stock is still a crypto roller coaster
Circle’s rising correlation with ether and DeFi exposure drives the re-rating, despite valuation and competition concerns.
What to know:
- Compass Point’s Ed Engel upgraded Circle (CRCL) to Neutral from Sell and cut his price target to $60, arguing the stock now trades more as a proxy for crypto markets than as a standalone fintech.
- Engel notes that CRCL’s performance is increasingly tied to the ether and broader crypto cycles, with more than 75% of USDC supply used in DeFi or on exchanges, and the stock is still trading at a rich premium.
- Potential catalysts such as the CLARITY Act and tokenization of U.S. assets could support USDC growth, but Circle faces mounting competition from new stablecoins and bank-issued “deposit coins,” and its revenue may remain closely linked to speculative crypto activity for years.
Top Stories
