Bitcoin May See Brief Bounce After Defending Key Price Support

Bitcoin is defending the key 200-day moving average support for the third consecutive day and may see a minor bounce to $8,700.

Bitcoin's repeated defense of key support may yield a minor bounce the bias will remain bearish as long as prices are held below resistance near $9,100.

Similar price action was seen on Wednesday with sellers failing to secure a close below the long-term support.

The cryptocurrency is set to be in a bull market if its charting higher lows above the 200-day MA, while lower lows below the MA represent bearish conditions.

While a corrective bounce could be seen in the next 24 hours or so, the bearish outlook would be invalidated only if prices find acceptance above $9,097.

The bounce could be short-lived, as the MACD histogram continues to produce deeper bars below the zero line, meaning the bearish momentum is still quite strong.

Tuesday's drop below the higher low of $9,097 created on May 30 confirmed the transition from the bullish higher lows, higher highs setup to bearish lower highs, lower lows setup.

The bias will remain bearish and the cryptocurrency will remain on the hunt for a drop below $8,000 as long as prices are trading below $9,097.

The cryptocurrency is currently trading well below the double top neckline of $9,533 and loss set to end the week below that level, as the relative strength index has turned bearish below 50 for the first time since the end of March.

The double top breakout, a bearish reversal pattern, would be invalidated if prices rise back above $9,533.