Bitcoin Risks Deeper Pullback After Drop Below $9K

After an overnight drop, bitcoin looks to have found acceptance below $9,000 and risks a deeper pullback, the technical charts indicate.

The cryptocurrency hit a one-week low of $8,652 on Bitfinex earlier today and is now trading at $8,700. The 10-percent decline from the weekly high of $9,767 on Wednesday has neutralized the immediate bullish outlook.

Further, the failure to hold above the key technical levels – descending (bearish biased) 100-day moving average (MA) of $9,126 and the double top bearish reversal neckline of $9,280 – will be discouraging for the bulls.

However, only a break below $8,459 would signal a short-term bearish reversal and open the doors for a deeper sell-off.

Daily chart

BTC created a bearish outside-day candle on Wednesday (trading range was wider than Tuesday’s high/low), which, as per textbook rules, is a sign of sudden bearish reversal. That said, traders and analysts usually want to see negative price action on the following day, before calling…