Bitcoin's Price Pullback Risks Bear Revival Below $6.9K

Bitcoin bulls need to defend key support at $6,905 to avoid invalidation of the short-term bullish outlook, technical charts suggest.

More notably, the short-term bull case would weaken if BTC finds acceptance below the 100-day moving average of $6,905.

BTC created a "Spinning top" candle yesterday, which, when viewed against the backdrop of the 21 percent rally from the low of $8,507, likely represents bullish exhaustion.

Looking ahead, a UTC close below the 100-day MA lined up at $6,905 would validate the spinning top candle and shift risk in favor of a downside break of the rising wedge.

Acceptance below the wedge support would confirm a bullish-to-bearish trend change, that is, the rally from the low of $5,859 has ended and the bigger downtrend from the July high of $8,507 has resumed.

In this case, BTC could revisit recent lows below $6,000.

The bulls need to defend the 100-day MA of $6,905 to keep the short-term bullish outlook intact.

As seen in the above chart, BTC has breached the rising trendline in favor of the bears.

View A UTC close below $6,905 would confirm a spinning top bearish reversal and strengthen the odds of a downside break of the rising wedge pattern.

A close today above the 100-day MA would keep the bulls in the game and allow a sustained move above $7,200 in the next couple of days.