The bitcoin price on Thursday depreciated as much as 10.33-percent against the US dollar.
The cryptocurrency reached an intraday low at $4,833 in an interim bearish correction. It was already trending inside an overbought zone when the downside action started. Traders found a decent opportunity to exit their long positions around bitcoin’s fresh yearly high at $5,342, prompting a sharp pullback towards $4,789, the higher-low from yesterday. The price didn’t extend the correction and started consolidating within a new trading range instead.
Bitcoin Price Consolidates Below $5,000
BITCOIN PRICE 1D CHART | SOURCE: TRADINGVIEW.COM, COINBASE
Coinbase data showed that bitcoin was more likely to extend its bearish correction to escape its overbought conditions. As of 20:21 UTC, the RSI was well above 70, signaling that buyers won’t be able to extend the bullish momentum any further. A red candle appeared thereafter, bringing RSI a little closer towards 70. A further selling action could, therefore, appear as the ongoing session matures.
Reference: https://www.ccn.com/bitcoin-price-careens-lower-but-bullish-trend-survives