Bitcoin Eyes Short-Term Bear Market After Two-Week Lows

Bitcoin's price pullback from the recent highs above $8,500 is increasingly looking like a short-term bear market on the technical charts.

BTC did not find takers on Thursday and the resulting failure to capitalize on the signs of bearish exhaustion ended up egging the bears to push the cryptocurrency down to two-week lows as expected.

At press time, BTC has found acceptance below the key support of $7,455 and has retraced 40 percent of the rally from $5,755 to $8,507.

What's more, the cryptocurrency also closed yesterday below the former resistance-turned-support of the 100-day moving average.

As a result, BTC appears to have entered a short-term bear market.

BTC closed below the 100-day MA yesterday, adding credence to the signs of a short-term bearish reversal: A bearish crossover between the 5-day and 10-day moving averages and a downside break of the ascending trendline by the relative strength index.

Further, BTC has also dropped below $7,455, which had served as good support earlier this week.

The RSI is hovering below 30.00, indicating oversold conditions and the chart also shows a bullish divergence of the RSI. Hence, a minor rally to $7,583 - $7,600 cannot be ruled out, although the gains will likely be short-lived, courtesy of the bearish setup on the daily chart.

View Bitcoin's close below the 100-day moving average on Thursday has confirmed a short-term bullish-to-bearish trend change and opened the doors to $7,130.

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