The Cryptocurrency clocked a high of $7,509 at 19:00 UTC yesterday


The cryptocurrency clocked a high of $7,509 at 19:00 UTC yesterday, according to Bitfinex data, before retreating to $7,070 at time of writing.

While that’s not good news for the bulls, only a clear break below $7,000 would kill the odds of a move higher to $7,800-$8,000, the technical charts indicate.

The pullback has neutralized the immediate bullish outlook. Furthermore, the cryptocurrency has created a minor, bearish head-and-shoulders pattern, as seen in the chart below.

Bitcoin image via Shutterstock
BTC closed yesterday above the key resistance (now support) of $7,240 (March 18), strengthening the case for a corrective rally to $7,800. Photo: Bitcoin image via Shutterstock

However, motion studies are still biased from the bulls: when the 50-hour running average (MA) and 100 hours are climbing MA, 200 hours MM. Bearish bias (flatlined) has been driven. So now, it might seem to drift down to $ 7,000 or below?

That said, the odds of a corrective rally to $7,800 (channel resistance) and $8,000 (psychological mark) would drop sharply if BTC closes (as per UTC) below $7,000.

1-hour chart. Photo: Bitcoin image via Shutterstock

Bitcoin closes below $7,000 today, it would add credence to the downward sloping (bearish biased) 10-day MA and signal failure to hold above $7,240. Further, the 5-day MA would adopt a bearish bias, derailing the bottoming out process.

Hence, BTC needs to defend $7,000 to avoid further losses.