Bitcoin Retains Bull Bias Despite Price Drop to Below $8K

Bitcoin’s (BTC) drop below $8,000 yesterday may have tempered the positive mood in the market, but the broader outlook still remains bullish, technical charts indicate.

The overnight drop in price came soon after the Securities and Exchange Commission’s (SEC) second rejection of the Winklevoss brothers’ application for a bitcoin ETF.

While the decision may have soured the sentiment in the market, the price pullback was also likely a function of overbought conditions. Notably, the short-duration price chart had warned of a dip below $8,000 yesterday.

At press time, the world’s largest cryptocurrency by market capitalization is trading at $7,990 on Bitfinex, having clocked a three-day low of $7,848 earlier today.

It is worth noting that BTC is still up 40 percent from the June 24 low of $5,755, despite the pullback from the two-month highs above $8,500. Thus, it is safe to say the bull market is intact.

4-hour chart

The bearish divergence of the relative strength index (RSI)…