$7,560: Bitcoin Bulls Fight Back, But Too Early to Call Reversal

Bitcoin's bulls have staged a defense after nearly a month of losses, but a short-term bullish trend reversal is not yet confirmed, the technical charts indicate.

A minor corrective rally had been expected, courtesy of a bullish price-relative strength index divergence in the short duration charts seen over the last two days.

Further, the resulting bullish outside-day candle engulfed the price action seen on Monday and Tuesday, and has neutralized the immediate bearish outlook.

As the name suggests, the bullish outside-day indicates a bearish-to-bullish trend change.

A short-term bullish trend reversal would be confirmed if bitcoin takes out the descending 10-day moving average hurdle in a convincing manner.

Currently, the 10-day MA is located at $7,562 and is capping the upside in prices, as seen in the chart above.

The 50-candle MA hurdle in the 4-hour chart below is also proving a tough nut to crack.

A high volume break above the 50-candle MA of $7,520 could see bitcoin attack the descending trendline hurdle, currently located at $7,930.

View The immediate outlook has been neutralized, but only a convincing move above the 10-day MA of $7,562 would add credence to yesterday's bullish outside-day candle and signal a short-term bullish reversal.

A break below $6,900 would open up downside towards $5,000, while a move above the recent high of $9,990 would revive the long-run bullish outlook.