Bitcoin Price Faces Minor Drop as Bulls Run Out of Steam

With signs of bull exhaustion showing on the technical charts, bitcoin (BTC) 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.

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.

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