Bitcoin Risks Drop Below $9K After 4-Day Low

Bitcoin dropped to four-day lows below $9,200 on Monday and now looks set to explore levels below the $9,000 mark, the technical charts indicate.

Yesterday's downwards move meant the cryptocurrency closed below the 10-day moving average - signaling short-term bullish invalidation - having failed to beat the key inverse head-and-shoulders neckline resistance over the weekend.

The inverted flag breakdown suggests the sell-off from the high of $9,990 has resumed and BTC could drop to $8,865.

The momentum studies also favor the bears, with both the 50-hour moving average and 100-hour MA showing a bearish bias.

Further, the 50-hour MA looks set to cut the 200-hour MA from above.

As noted earlier, BTC closed below the 10-day MA yesterday, signaling that the rally from the April 1 low of $6,425 has made a temporary top at $9,990.

Further, BTC's attempt to retake the 10-day MA failed earlier today and the 5-day MA has adopted a bearish bias.

As a result, the cryptocurrency looks likely to find acceptance below the ascending trendline and possibly drop below the $9,000 mark in the next 24 hours or so.

A daily close below the 100-day MA located at $8,897 would confirm a short-term bullish-to-bearish trend change and could yield a deeper drop to $7,787.

On the higher side, a move above $9,678 would put $10,000 back on the map.