Drop to $9K Still in Play Despite Brief Bitcoin Rally

Despite a brief rally yesterday, bitcoin is still in corrective mode and risks falling back below $9,000, chart analysis suggests.

The cryptocurrency broke out of the bearish falling channel setup yesterday, courtesy of a bullish relative strength index divergence - indicating the pullback from the recent high of $9,990 had ended at $8,980.

The ascent has been cut short around $9,380 in the last 15 hours, as seen in the chart below.

As of writing, bitcoin is attempting a break above $9,380 on Bitfinex, above which a major resistance is seen at $9,442 - the 200-hour moving average.

As a result, a convincing move above $9,442 could be a tough task.

Further, the short-term moving averages in the daily chart below have rolled over in favor of the bears.

The bearish crossover between the 5-day MA and the 10-day MA indicates a short-term bullish-to-bearish trend change.

View A break below $9,228 would add credence to the bearish 5-day MA and 10-day MA crossover and open the doors for a drop to $8,980 and $8,868.

A daily close below $8,652 would confirm a bearish reversal.

On the higher side, a daily close above the 10-day MA would signal the end of the pullback from the recent high of $9,990.