Bitcoin Faces Minor Price Retreat Amid Increasing Bull Exhaustion

View Bitcoin created a doji candle yesterday, signaling buyer exhaustion near the crucial 21-week moving average resistance at $4,073.

The doji candle would be invalidated if prices find acceptance above $4,000 in the next few hours, confirming a bull flag breakout on the 4-hour chart.

Bitcoin is showing signs of buyer exhaustion and could see a minor pullback unless resistance at $4,000 is scaled in the next few hours.

Essentially, BTC created a doji candle, which is widely considered a sign of indecision in the marketplace.

Notably, the fact that the doji candle has appeared close to the historically strong resistance of the 21-week simple moving average, currently at $4,073, suggests the indecision is predominantly among the bulls and could be considered a sign of buyer exhaustion.

A price pullback could be on the way, especially if support at $3,930 is breached in the next few hours.

The rally has stalled near $4,000 and a doji candle has appeared, validating the bearish view put forward by the descending 21-week SMA, currently at $4,073.

It's worth noting that bitcoin may have a tough time scaling or holding onto gains above the 21-week SMA as long as that average is trending south.

As can be seen, BTC has created a minor bull flag - a continuation pattern that usually accelerates the preceding bullish move.

The bullish exhaustion signaled by the doji candle would gain credence if prices fall below the flag support at $3,930.