Bitcoin Price Takes a $200 Tumble After Eight-Day Highs

Having dropped back from eight-day highs hit this morning, bitcoin price could be in for a bout of consolidation before further upside unfolds.

The cryptocurrency rose to $6,596 earlier today on Bitfinex - the highest level since Sep.

Despite the strengthening bullish case, BTC quickly lost around $200 soon before press time.

As if writing, BTC is changing hands at $6,450, having printed an intraday low of $6,355 a few minutes ago.

While the sudden price pullback could force investors to question the sustainability of the corrective rally, the short-term technical charts continue to show that the path of least resistance is on the higher side.

BTC's retreat from the highs near $6,600 is likely associated with the bearish divergence of the relative strength index seen in the hourly chart.

On the daily chart, BTC closed above the 10-day MA yesterday, neutralizing the bearish view put forward by the rising wedge breakdown on Sept. 5.

It's worth noting that technical recovery usually gathers speed after the short-term MAs bottom out - unless, of course, there is a major positive fundamental news.

View BTC has retreated from eight-day highs, but the technical recovery is still intact.

Disclosure: The author holds no cryptocurrency assets at the time of writing.