Bitcoin Remains On the Defensive With Price Below $8K

View BTC has traded in a narrowing price range over the last 48 hours, aborting the immediate bullish view put forward by Sunday's double-digit gains.

A range breakdown, if confirmed, would allow a price drop toward $7,200.

Bitcoin is teasing a downside break of its recent trading range, having again faced rejection above $8,000 earlier today.

Further, BTC remained on the defensive Tuesday, with prices clocking daily highs and lows within Monday's trading range.

Essentially, BTC's narrowing price range has created a contracting triangle over the last 24 hours, neutralizing the immediate bullish view put forward by Sunday's rally.

The case for notable price pullback, suggested by repeated bull failures at $8,300 would strengthen if the indecision represented by the contracting triangle ends with a downside break.

As of writing, the lower edge of the trading range is seen at $7,805, while bitcoin is trading at $7,824, down 1.6 percent on the day.

While the short-term prospects are looking a little bleak, the long-term outlook remains constructive, with cryptocurrency reporting nearly 50 percent gains on the opening price of $5,267 seen May 1.

With prices trading well below $8,200, the bearish hammer candle created on Monday is still valid.

As a result, the narrowing price range looks likely to be breached to the downside.