Bitcoin Eyes Minor Price Bounce After Hitting Two-Week Low

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Intraday charts suggest scope for a minor bounce to $7,300.

Acceptance below support at $7,087 would bolster the short-term bearish setup and open the doors for a re-test of recent lows near $6,500.

Bitcoin has potential for a small price bounce after hitting two-week lows early on Thursday.

The top cryptocurrency by market value fell to a two-week low of $7,072 during the Asian trading hours and was last seen changing hands at $7,160 on Bitstamp, representing a 0.8 percent drop on a 24-hour basis.

The week began on a negative note with the cryptocurrency registering a 2.4 percent drop on Monday after facing strong rejection above $7,600.

The cryptocurrency has been charting lower highs and lower lows since topping out at $13,880 in June and is currently down more than 45 percent from that level.

A minor bounce could be seen before a potential deeper sell-off.

On the 4-hour chart, the RSI is creating higher lows, contradicting the slow drop in prices.

The 14-day relative strength index is hovering in bearish territory below 50, having violated an ascending trendline earlier this week.

A break below the immediate support at $7,087, if confirmed, would bolster the bearish setup and open the doors for a re-test of recent lows near $6,500.

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