Share this article
Bitcoin Risks Deeper Pullback After Drop Below $9K
After hitting a one-week low today, bitcoin risks a deeper pullback if support at $8,459 is breached, the technical charts indicate.
Updated Sep 13, 2021, 7:52 a.m. Published Apr 26, 2018, 10:30 a.m.
Make us preferred on Google
After an overnight drop, bitcoin looks to have found acceptance below $9,000 and risks a deeper pullback, the technical charts indicate.
The cryptocurrency hit a one-week low of $8,652 on Bitfinex earlier today and is now trading at $8,700. The 10-percent decline from the weekly high of $9,767 on Wednesday has neutralized the immediate bullish outlook.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Further, the failure to hold above the key technical levels – descending (bearish biased) 100-day moving average (MA) of $9,126 and the double top bearish reversal neckline of $9,280 – will be discouraging for the bulls.
However, only a break below $8,459 would signal a short-term bearish reversal and open the doors for a deeper sell-off.
Daily chart
BTC created a bearish outside-day candle on Wednesday (trading range was wider than Tuesday's high/low), which, as per textbook rules, is a sign of sudden bearish reversal. That said, traders and analysts usually want to see negative price action on the following day, before calling a bearish reversal.
Accordingly, only a close (as per UTC) today below the key support of $8,459 (April 15 high) would confirm a short-term bullish-to-bearish trend change and open doors for a deeper pullback.
However, BTC is showing signs of a negative follow-through, as currently it is trading under the previous day's low of $8,765 – though the downside is capped by the ascending (bullish) 10-day moving average at $8,706 and the gradually ascending (bullish) 4-hour 50-day MA.
4-hour chart
BTC may regain some poise if the bulls manage to defend the 4-hour 50-day MA in the next few hours. On the other hand, a failure to hold above the bullish 4-hour 50-day MA and 10-day MA would boost the odds of sustained drop below $8,459.
View
Confirmation of a bearish outside-day reversal would open up downside towards $7,823.
A daily close (as per UTC) below that level would signal a violation of higher lows and higher highs pattern (bullish setup) and would also mean the long-term descending trendline breakout has failed. In such a case, BTC could revisit the April 1 low of $6,425.
Bullish scenario
BTC will likely revisit $9,280 if the bulls manage to defend the 4-hour 50-day MA and 10-day MA in the next few hours.
Acceptance above $9,280 would expose the 200-day moving average, currently located at $9,853.
Water drop 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
Ripple-linked XRP drops 5%, opening downside risk toward $1.70
Traders are watching $1.80 as near-term support, with $1.87–$1.90 now the key resistance zone.
What to know:
- XRP dropped about 5 percent from $1.91 to near $1.80 as bitcoin’s pullback sparked broad risk-off selling across high-beta tokens.
- The slide accelerated once XRP broke below key support around $1.87 on heavy volume, erasing last week’s gains before buyers stepped in near the $1.78–$1.80 zone.
- Traders now view $1.80 as a crucial support level, with a sustained move back above roughly $1.87–$1.90 needed to signal a corrective pullback rather than the start of a deeper decline.
Top Stories
