Bitcoin Still on Defensive But Price Rally Possible Over $3.9K

Bitcoin remains on the defensive despite a 4-percent recovery from nine-day lows today, but bearish pressure may weaken if prices rise above key resistance near $3,900.

At press time, the price stood at $3,770, representing a 1.5 percent drop on a 24-hour basis.

Despite the quick recovery, the odds appear to be stacked in favor of a drop to recent lows below $3,500.

To start with, BTC closed below $3,711 yesterday, invalidating the short-term bullish reversal signaled by last Wednesday's 11 percent gains.

The immediate outlook remains bearish as long as prices are holding below the lower edge of the symmetrical triangle pattern, currently at $3,850.

Over on the daily chart, the lower high pattern, yesterday's bearish close below $3,771 and the downward sloping 5- and 10-day exponential moving averages continue to favor a re-test of $3,474.

View The probability of a drop to the recent low of $3,474 remains high while prices are trading below resistance near $3,900.

A break below $3,629 will likely bring a speedy drop toward $3,474.

A close below that would bolster the long-term bearish technicals and allow potential for a drop to psychological support at $3,000.

Bitcoin image via Shutterstock; price charts by Trading View.