Bitcoin's Double-Digit Drop Negates Long-Term Bull Market

Bitcoin's double-digit drop has torn down the scaffolding of what had seemed to be a developing long-term bull market just days ago.

As seen in the above chart, the bears have repeatedly failed in the last 11 weeks to secure a weekly close below $6,000, signaling the sell-off from the record high of $20,000 has run out of steam.

The bears will likely feel emboldened if BTC closes the week below $6,000.

One way to gauge whether BTC is likely to end this week below the significant support level is to study the line chart.

As can be seen, BTC has charted a pennant pattern on the daily line chart.

A UTC close below the pennant support of $6,340 would signal a revival of the long-term bear market.

The relative strength index on the 4-hour chart is hovering at its lowest level since June 11, signaling extreme oversold conditions.

View BTC's drop to the low of $6,302 has neutralized the long-term bullish outlook.

A weekly close below $6,000 would confirm a bearish reversal.

The odds of BTC ending this week below $6,000 would go up if bitcoin closes below the pennant support for two consecutive days.