Bitcoin Recovers From 2.5-Week Lows But Price Outlook Remains Bearish

View Bitcoin's short-term outlook has turned bearish, courtesy of Tuesday's UTC close below the 30-day average of price.

A key daily and 3-day chart indicator is also indicating an end of the price rally from December lows.

A UTC close above the 10-day price average at $8,383 is needed to invalidate the short-term bearish setup.

Essentially, BTC created multiple bullish higher lows along that line over the last four months, as discussed yesterday.

Now, the short-term outlook has turned bearish with the first UTC close below the average since Feb. 8.

The 14-day relative strength index has dived out of the rising trendline representing a rally from December lows near $3,100, and is now teasing a drop into a bearish territory with a reading below 50.00.

The Chaikin money flow index - which takes into account both the price and trading volumes - is losing altitude, a sign of weakening buying pressure.

The price action seen at press time also indicates that the tide has turned, with BTC struggling to register big gains above the 30-day MA, currently at $7,772.

The short-term bias will remain bearish as long as prices are held below the 10-day MA, currently at $8,383.

Bitcoin image via Shutterstock; charts by Trading View.