Bitcoin Stumbles Near New High But $5k Still in Play

Bitcoin bears may have had the upper hand in their fight with the bulls on Tuesday, although the positive price action seen today suggests the cryptocurrency is still on the hunt for $5,000 (all-time high) levels.

The bitcoin-U.S. dollar (BTC/USD) exchange rate clocked a fresh five-week high of $4,925 on Tuesday, but ended the session with marginal losses at $4,750.

The decline lacked clear catalysts, however. Techies may consider overbought conditions responsible for the retreat, while news traders may blame Putin’s comments on cryptocurrency for stalling the rally at a time when record high was within touching distance.

But, whatever the reason, bitcoin’s descend from $4,925 to $4,750 does call for caution. At press time, BTC is trading at $4,800 – up 0.20 percent on the day. Week-on-week and month-on-month, the cryptocurrency is up 14 percent.

Price action analysis suggests the broader outlook remains bullish unless prices end on a negative note today. In that event, a short-term bullish-to-bearish trend change would be confirmed.

Daily chart

The chart above shows:

  • Doji-like candle signaling indecision in the market place
  • Average true range (ATR) continues to drop, indicating the uptrend lacks momentum or low volatility.

A doji candlestick forms when a cryptocurrency’s open and close are virtually equal. It forms due to indecision between the buyers and sellers and signals exhaustion.

The average true range essentially tracks the range of price movement in the cryptocurrency. It is considered a volatility indicator due to the fact that it measures the distance between a series of past highs and lows for a given period. A higher ATR means the move (bullish/bearish) has strong momentum or the cryptocurrency is volatile.

The falling ATR on the bitcoin daily chart indicates weak momentum and a choppy market.


  • BTC could still test $5,000 as doji candles alone do not signal trend reversal.
  • Bearish Scenario: a negative price action today would confirm bearish doji reversal and open doors for a pullback to $4,500 levels.

This story originally appeared on Coindesk. Image courtesy of Shutterstock.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Join The Discussion

Japan’s Prime Minister Shinzo Abe
What Now For Japan After Abe’s Landslide Election Victory? [Video]
Secretary of State Rex Tillerson
Tillerson Seeks Arab Help In US Effort To Isolate Iran [Video]
Alfonso Dastis
Spain Calls On Catalans To Respect Its Decision To Impose Direct Rule [Video]
The billionaire populist Andrej Babis
Trump-Style Billionaire Populist On Brink Of Power In Czech Republic [Video]
Bitcoin gold
What is Bitcoin Gold? [Podcast]
Bitcoin Pullback
Prepping For A Pullback? Bitcoin Price Drops Below $6,000
12 Predictions for the Future of Blockchain
12 Predictions For The Future Of Blockchain [Podcast]
Bitcoin Price
This Chart Shows Why Bitcoin Can Go Higher Than $6,000 [Video]
How To Use Emojis In Your Marketing [Podcast]
Eric and Neil Marketing School
7 Types Of Marketing That Are Long-Term Plays [Podcast]
The perfect blog post
The Recipe For A Perfect Blog Post [Infographic]
5 Low-Cost Ways to Get Started With Video Marketing
5 Low-Cost Ways To Get Started With Video Marketing
Jasmine Star
7 Tips For Service-Based Business Owners To Crush It On Social Media [Video]
Everything You Need To Know About Instagram Analytics
Everything You Need To Know About Instagram Analytics [Infographic]
Facebook’s Adding PayPal As A New Peer-To-Peer Payment Option In Messenger
Facebook Stories
5 Reasons Why Your Business Should Consider Facebook Stories For Pages
Self Discipline
14 Ways To Improve Your Self-Discipline [Inforgraphic]
Brain Hacks
Brain Hacks: How To Learn Anything Faster [Video]
Stand up
Stand Up And Get Moving! Do You Know Sitting For Too Long Can Kill You?
Which sleep pattern is right for you
Which Sleep Pattern Is Right for You? [Infographic]
Optimize Hashtags Using These 6 Tips [Infographic]
72 Essential Features of Every Successful Ecommerce Website
72 Essential Features Of Every Successful Ecommerce [Infographic]
How to make objective decisions
How to Make Objective Decisions [Infopraphic]
10 Tips to Avoid Camera Hacking
10 Tips to Avoid Camera Hacking [Infographic]