A key technical line applied the brakes to bitcoin’s (BTC) price sell-off earlier this week, but so far the bounce has been shallow, with upside capped around $7,900.
The leading cryptocurrency by market value began the week on a negative note with prices dropping 7 percent on Monday. The sell-off was extended Tuesday with prices hitting a 2.5-week low of $7,432.
The drop below the widely followed 4-hour chart’s 200-candle moving average (MA), then located at $7,970, was short-lived, with prices recovering to $7,900 by the early European trading hours on Wednesday.
The bounce, however, has stalled near $7,900 over the last 24 hours. The cryptocurrency’s inability to produce a stronger corrective rally despite the defense of crucial support validates buyer exhaustion signaled by last week’s doji candle.