Bitcoin Price Drops 5% But Rebound Likely, Charts Suggest

A high-volume break above $12,061 is thus needed to revive the bullish view put forward by a bearish channel breakout seen in the 4-hour chart earlier this week.

A move below Wednesday's low of $10,830 would shift risk in favor of a drop to Tuesday's low of $9,614.

Bitcoin's price needs to break above $12,061 to mitigate bearish pressure.

The price drop contradicts the bullish picture painted by technical charts - the hourly chart was reporting a high-volume bullish breakout in the European trading hours yesterday.

As a result, a high-volume break above $12,061 is needed to revive the bullish view.

The falling channel breakout confirmed July 3 ended up creating a second recent bearish lower high at $12,061; the first created June 28 at $12,448.

The failure to post big gains above $12,000 could be associated with the fact that buy volumes remained low even after the channel breakout.

A break above $12,061 would revive the bullish view put forward by the bearish channel breakout and open the doors to $13,880.

The move above the latest bearish low need to be backed by a surge in volumes.

The 5 percent drop seen overnight took the shine off the bullish hammer reversal seen in the previous two days.