Correction Coming? Bitcoin Retreats After $17k High

Bitcoin prices are suffering this morning, following a record spike to over $17,000 overnight.

As per CoinDesk's Bitcoin Price Index (BPI), the cryptocurrency looked set to revisit the new high of $17,364 hit yesterday at 16:29 UTC, but ran out of steam at $17,153.94 at 1:59 UTC.

Since then, however, bitcoin has taken a sharp downturn and was last trading at $14,794 levels at time of writing – a drop of close to $2,500 since yesterday's high.

BTC has appreciated close to a hundred and fifty percent during the last five weeks on hypothesis that a flow to the mainstream thru an entrance to the futures contracts market might boom call for for the cryptocurrency. it truly is even though the institutional cash could be chasing the artificial derivatives that seldom impact the underlying asset (bitcoin).

in addition, as CoinDesk said, the sector's largest funding banks consider the economic system is unwell-organized for the launch of bitcoin futures and feature referred to as for a postponement of the listings.

presently, it seems like the markets can be heeding the warning. Having shown symptoms of exhaustion near file highs earlier nowadays, the sell-off is selecting up pace and BTC is now down over 12 percentage for the consultation, as in keeping with the BPI.

The charge chart analysis additionally suggests that the chances of a technical correction have extended over the last 24 hours.

Bitcoin chart :)

On the above chart:

The 5-day and 10-day moving averages (MAs) are curled upwards in favor of the bulls.
The rising trend line (red) is seen offering support around $10,000 levels.
The stochastic has turned lower from the overbought territory.
The relative strength index (RSI) has formed a top, but is yet to cut 70.00 levels from above (i.e. turn lower from the overbought region).

As mentioned the day past, historical information show bitcoin fee suffers a incredible technical pullback only on confirmation of a bearish fee-RSI divergence and/or if the RSI and stochastic circulate decrease from the overbought territory.

there may be no evidence but of a bearish fee-RSI divergence, but the stochastic has moved lower from the overbought territory (marked through circles). A correction could acquire pace as soon as the RSI also breaks beneath 70.00 degrees.

1-hour chart

The above chart shows:

Rounding top pattern – formed at the end of an extended upward trend and indicates a reversal in the long-term price movement. A break below $15,142 (rounding top neckline) would open the doors for a move to $12,500 levels.
The rounding top adds credence to the overbought conditions shown by the daily RSI and stochastic.
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BTC could suffer a pullback to sub-$10,000 levels.
The upward sloping nature of the 10-day MA indicates the dips below $10,000 could be short-lived, however.
On the higher side, $18,261 and $18,399 are key resistance levels.