Share this article
Bitcoin Price Faces Minor Drop After One-Month Highs
Bitcoin could be in for a minor price pullback as the short-duration charts are flashing signs of bullish exhaustion.
Updated Sep 13, 2021, 8:20 a.m. Published Sep 3, 2018, 11:00 a.m.
Make us preferred on Google
With signs of bull exhaustion showing on the technical charts, bitcoin faces a return to the psychological support of $7,000.
At press time, the cryptocurrency is changing hands at $7,235 on Bitfinex – representing a 0.4 percent drop on a 24-hour basis.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Prices found acceptance above $7,000 over the weekend, having cleared the resistance offered by the 50-day and 100-day moving averages (MAs) last week and rose to $7,429 yesterday – the highest level since Aug. 4.
While the bull grip around BTC strengthened in the last seven days, prices failed to cut through the resistance of the trendline sloping upwards from the June 29 low and Aug. 12 low, possibly due to buyer exhaustion. This should not come as a surprise as BTC has rallied nearly 27 percent in the 2.5 weeks without notable price pullback.
As a result, BTC could feel the pull of gravity in the next 24 hours, although overall outlook remains bullish as long as prices do not find acceptance below $7,000.
4-hour chart
As seen in the above chart, BTC created a gravestone doji candle yesterday, suggesting the upside momentum has weakened – that is, the bulls failed to push prices above the trendline hurdle and the bears regained lost ground.
Further, the relative strength index (RSI) rolling over from above 80.00 (overbought territory) is calling for profit taking or healthy pullback.
Prices could, therefore, drop to the rising wedge support, currently seen at $7,040, but, with the 100-candle MA crossing the 200-candle MA from below (bull cross), the support will likely hold.
The stacking order of the 50-candle, above the 100-candle, above the 200-candle, is a typical bullish signal.
Daily chart
The daily chart shows that the 5-day and 10-day MAs continue to trend north, indicating a short-term bullish setup, as well as a bullish crossover between the 50-day and 100-day MAs. The RSI, too, is biased toward the bulls.
Only if the bears manage to pull off a downside break of the rising wedge is a deeper sell-off likely.
View
- BTC could be in for a minor pullback to $7,040–$7,000 in the next 24 hours.
- The overall bias remains bullish, as seen in the daily chart, hence, BTC will likely defend the support at $7,000 and could resume the journey back towards $7,500.
- A downside break of the rising wedge would signal a bear revival and shift risk in favor of a drop to support at $6,650 (multiple daily highs).
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; Charts by Trading View
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Macro fears mask Ethereum’s momentum, SharpLink CEO says
SharpLink CEO Joseph Chalom argues that macro uncertainty is hiding a massive institutional shift toward Ethereum-based tokenization.
What to know:
The context: Former BlackRock Head of Digital Assets Strategy, and SharpLink CEO, Joseph Chalom says institutional giants are betting heavily on Ethereum to serve as the global infrastructure for asset tokenization, ignoring current price stagnation.
He outlines three key drivers for a projected 10x surge in Ethereum activity this year:
- BlackRock’s Larry Fink has signaled strong conviction that Ethereum will be the "toll road" for tokenized assets.
- Over 65% of all stablecoins and tokenized assets live on Ethereum, dwarfing Solana by a factor of ten.
- High-value projects prioritize Ethereum's decade-long record of security and liquidity over faster, cheaper alternatives.
Top Stories
