Bitcoin’s price action of the last 24 hours is telling a tale of buyer exhaustion and hinting at a more major price pullback ahead. The top cryptocurrency by market value jumped to three-month highs above $9,600 during Monday’s Asian trading hours, extending January’s 30 percent gain.
However, the breakout above the lateral resistance of $9,586 (Nov. 4 high) was short-lived and the cryptocurrency ended the day (UTC) on a flat note at $9,288.
Put simply, the day began with optimism but ended on a pessimistic note, with buyers failing to establish a strong foothold above price resistance. This type of price action at multi-month highs and after significant rallies is indicative of bull fatigue and often precedes a reversal.
Bitcoin is feeling the pull of gravity at press time. The cryptocurrency is currently trading below the former resistance-turned-support of $9,188 (Jan. 19 high). The global average price, as calculated by CoinDesk’s Bitcoin Price Index, is seen at $9,170 – down 1.5 percent on a 24-hour basis.