The Bitcoin (BTC) price has dropped back from eight-day highs on Friday morning, September 14, and it could be in for a bulge of solidification before further upward movement happens.
The crypto increased to $6,596 on Bitfinex earlier on Friday, which is the highest level since Thursday, September 6, adding credibility to the short-term reversal indicated by the symmetrical triangle outbreak during the start of the week.
Nevertheless, regardless of the strengthening case, Bitcoin rapidly lost approximately $200 just before press time. Bitcoin was trading at $6,450, having printed a single day low of $6,355 around the evening of Friday, September 14.
At the time of writing on Saturday, September 15, the market has seen an uptrend, and the BTC price increased to $6,527.
While the hasty price drawback could push investors to doubt the sustainability of the general rally, the temporary technical charts go on to indicate that the path of minimum resistance is on the higher side.
Bitcoin's pullback from the highs around $6,600 is probably associated with the pessimistic difference of the relative strength index observed in the hourly chart.
Certainly, the RSI has adopted a clumsy partiality, but it is an infant to the conclusion of the technical recovery, as the major moving averages (MAs) of 50-hour,100-hour and 200-hour, are still rising favoring the giants.
Essentially, the significant MAs are capping the downward tendency at the time of press. This sets the scope to remain untouched for a recovery to resistance at $6,800 level.
Bitcoin closed over the 10-day MA on Thursday, September 13. on the daily chart, inactivating the bearish stance brought forward by increasing wedge breakdown on Wednesday, September 5.
However, the short-term MA continues to trend downwards. This, added with a bearish RSI difference on the hourly chart could make crypto range-likely for next one day or so.
It's good to know that technical recovery normally generates momentum after the short-term MAs bottom out unless, admittedly, there is significant positive groundlaying news.