Bitcoin Eyes Bear Revival After Key Support Breached

Bitcoin's bears may be building for a strong comeback, having pushed prices to a eight-day low below $6,400 earlier today.

As discussed yesterday, the cryptocurrency's persistent failure to scale the $6,800 mark in a convincing manner had raised the prospects of another leg down in bitcoin prices.

Bitcoin breached the key support of $6,620 a couple of hours ago - signaling that the relief rally from the June 13 low of $6,108 has ended at $6,850 and the bears have regained control.

The technical charts now indicate scope for a drop below $6,000 over the weekend.

BTC's drop below $6,620 has confirmed a rising wedge breakdown - a bearish reversal pattern indicating the corrective rally has ended and the broader bearish trend has resumed.

As seen above, the pennant breakdown confirmed earlier this month opened up downside towards 100-week moving average, currently located at $4,551.

The bearish crossover between the 5-month and 10-month moving averages also favors a convincing break below the immediate support of $6,000.

View BTC will likely find acceptance below the immediate support of $6,000 over the weekend, and could drop to $5,090 over the next couple of weeks.

A daily close above $6,850 would abort the immediate bearish view.

A high volume break above the 50-week MA, currently located at $6,958 would signal long-term bearish invalidation.