Bitcoin Faces Price Correction Toward $7.6K, Technical Charts Suggest

View Bitcoin printed a 10-month high of $8,390 earlier today only to fall back quickly below $8,000, strengthening the bearish divergence of the 4-hour chart relative strength index.

The case for correction in the next day or two would weaken if the price rises back above $8,300.

Bitcoin could be in for a price correction, as exhaustion leaves the bulls unable to hold onto fresh 10-month highs hit earlier today.

While the pullback from highs above $8,300 on May 14 was reversed by the 50-hour moving average support, the latest fall has taken prices below that line.

A slide to that key support looks likely, as the RSI printed another lower high earlier today, contradicting BTC's rise to fresh 10-month highs, and is now reporting a descending triangle breakdown.

A 4-hour close below $7,619 would confirm a double-top breakdown and create room for a drop to levels below $6,900.

The RSI on the daily chart is also beginning to diverge from the uptrend in price, signaling weakening bullish momentum.

The short-term outlook would turn bearish if and when prices find acceptance below the historically strong support of the 30-day MA, currently at $5,923.

The case for a pullback would weaken if the price rises back above $8,300.

Bitcoin image via Shutterstock; technical charts by Trading View.