Bitcoin Retains Bull Bias Despite Price Drop to Below $8K

Bitcoin's drop below $8,000 yesterday may have tempered the positive mood in the market, but the broader outlook still remains bullish, technical charts indicate.

The overnight drop in price came soon after the Securities and Exchange Commission's second rejection of the Winklevoss brothers' application for a bitcoin ETF. While the decision may have soured the sentiment in the market, the price pullback was also likely a function of overbought conditions.

Notably, the short-duration price chart had warned of a dip below $8,000 yesterday.

The cryptocurrency beached the rising channel yesterday, neutralizing the immediate bullish outlook and also established lower highs and lower lows pattern.

Investors may feel tempted to question the validity of the long-term bullish breakout discussed yesterday as BTC has fallen back in the descending channel.

Asset prices tend to revisit key support levels immediately after a long-term bullish breakout due to overbought conditions.

The long-term bullish breakout remains on the cards and would be confirmed if BTC closes above $8,050 on Sunday.

BTC also retains the short-term bullish outlook as the 5-day and 10-day MAs continue to rise in favor of the bulls.

View The short-term outlook remains bullish despite the overnight correction in BTC prices.

On the downside, only a daily close below the rising 10-day MA of $7,718 would abort the short-term bullish view.