After an overnight drop, bitcoin looks to have found acceptance below $9,000 and risks a deeper pullback, the technical charts indicate.
The cryptocurrency hit a one-week low of $8,652 on Bitfinex earlier today and is now trading at $8,700. The 10-percent decline from the weekly high of $9,767 on Wednesday has neutralized the immediate bullish outlook.
Further, the failure to hold above the key technical levels - descending (bearish biased) 100-day moving average (MA) of $9,126 and the double top bearish reversal neckline of $9,280 - will be discouraging for the bulls.
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However, only a break below $8,459 would signal a short-term bearish reversal and open the doors for a deeper sell-off.