Bitcoin Risks Deeper Pullback After Drop Below $9K

After an overnight drop, bitcoin looks to have found acceptance below $9,000 and risks a deeper pullback, the technical charts indicate.

Further, the failure to hold above the key technical levels - descending 100-day moving average of $9,126 and the double top bearish reversal neckline of $9,280 - will be discouraging for the bulls.

Only a break below $8,459 would signal a short-term bearish reversal and open the doors for a deeper sell-off.

BTC created a bearish outside-day candle on Wednesday, which, as per textbook rules, is a sign of sudden bearish reversal.

Accordingly, only a close today below the key support of $8,459 would confirm a short-term bullish-to-bearish trend change and open doors for a deeper pullback.

BTC is showing signs of a negative follow-through, as currently it is trading under the previous day's low of $8,765 - though the downside is capped by the ascending 10-day moving average at $8,706 and the gradually ascending 4-hour 50-day MA. 4-hour chart.

On the other hand, a failure to hold above the bullish 4-hour 50-day MA and 10-day MA would boost the odds of sustained drop below $8,459.

Confirmation of a bearish outside-day reversal would open up downside towards $7,823.

A daily close below that level would signal a violation of higher lows and higher highs pattern and would also mean the long-term descending trendline breakout has failed.

BTC will likely revisit $9,280 if the bulls manage to defend the 4-hour 50-day MA and 10-day MA in the next few hours.