While the odds are still stacked in favor of bitcoin‘s bears, a level of indecision looks to be creeping in, according to the technical charts.
The cryptocurrency fell to a 6.5-week low of $7,142 on Bitfinex earlier today, having breached the 50-week moving average (MA) support for the first time since 2015.
Amid the continued drop in prices, though, the charts show a doji candle formed yesterday, indicating that the bears may be running out of steam and a short-term rally could be on the cards.
As of writing, BTC is changing hands at $7,210 – down 16.58 percent from the last Monday’s high of $8,644.
The pennant breakdown, a bearish continuation pattern, on the 4-hour chart indicates the sell-off from the last Monday’s high of $8,644 has resumed and opened the doors to $6,800 (target as per the measured height method: pennant range subtracted from breakout price).
The 50-candle, 100-candle, and 200-candle moving averages (MAs) are aligned in favor of a further drop in prices…