Bitcoin Price Faces Minor Drop After One-Month Highs

With signs of bull exhaustion showing on the technical charts, bitcoin faces a return to the psychological support of $7,000.

Prices found acceptance above $7,000 over the weekend, having cleared the resistance offered by the 50-day and 100-day moving averages last week and rose to $7,429 yesterday - the highest level since Aug. 4.

This should not come as a surprise as BTC has rallied nearly 27 percent in the 2.5 weeks without notable price pullback.

As a result, BTC could feel the pull of gravity in the next 24 hours, although overall outlook remains bullish as long as prices do not find acceptance below $7,000.

As seen in the above chart, BTC created a gravestone doji candle yesterday, suggesting the upside momentum has weakened - that is, the bulls failed to push prices above the trendline hurdle and the bears regained lost ground.

Prices could drop to the rising wedge support, currently seen at $7,040 with the 100-candle MA crossing the 200-candle MA from below, the support will likely hold.

The stacking order of the 50-candle, above the 100-candle, above the 200-candle, is a typical bullish signal.

View BTC could be in for a minor pullback to $7,040-$7,000 in the next 24 hours.

The overall bias remains bullish, as seen in the daily chart BTC will likely defend the support at $7,000 and could resume the journey back towards $7,500.

A downside break of the rising wedge would signal a bear revival and shift risk in favor of a drop to support at $6,650.