- Bitcoin tanked by $1,702 early on Friday, the biggest intraday drop since January 2018.
- On the way back up, the hourly chart shows scope for re-test of former support-turned-resistance at $7,619.
- A bounce to $7,619, if any, could be short-lived with prices falling back to $6,178 (daily low) over the weekend, as both the 4-hour and daily charts are biased bearish.
- A bounce from the historically strong support of the 30-day moving average (MA) at at $5,986 would imply an end to the price pullback.
Amid extremely overbought conditions, bitcoin has fallen by $1,702 – its biggest intraday price drop since January 2018.
The cryptocurrency market leader nosedived from the day’s opening price (UTC) of $7,880 to a seven day low of $6,178 on Bitstamp in the Asian trading hours.
The $1,702 drop is the highest since January 17, 2018, according to Bitstamp data. On that day, BTC had tumbled by $2,171 from the opening price of $11,393 only to recovery all the way back to $11,191 by UTC close.
Bitcoin has recovered more than 50 percent since the low hit earlier today. However, just before press time, its price is still down around 8.2 percent on the day at $7,223.
The sell-off seen today doesn’t come as much of a surprise, as the widely followed relative strength index (RSI) has been reporting extremely overbought conditions with a near-90 reading earlier this week.
Buyer exhaustion was also evident from BTC’s repeated failure to hold onto 10-month highs above $8,300, as seen in the last 72 hours.