Bull Case for Bitcoin Weakest Since February, Price Indicator Says

View Bitcoin's bullish momentum has weakened to five month lows, according to Chaikin Money Flow indicator.

That, coupled with the bearish lower highs pattern on short duration chart indicates BTC could fall back to the recent low of $9,049 and may even break lower.

The bullish mood in the bitcoin market is at its weakest in five months, according to key technical indicator.

The latest reading is the lowest since Feb. 20, which means the market is least bullish on the top cryptocurrency in five months.

The CMF's retreat from the 21-month high of 0.40 to the current five-month lows validates the short-term bearish reversal signaled by a bearish lower highs pattern created by bitcoin during the recent pullback from $13,880 to $9,049.

Other short term technical studies are also biased bearish, as seen in the chart below.

BTC faced rejection at the descending trendline hurdle near $10,200 yesterday and closed below $9,900, leaving a candle with a long upper shadow - a bearish development.

The failure to take out the trendline hurdle also reinforced the bearish view put forward by the descending 5- and 10-day MAs and the bearish crossovers of the 5-, 50- and 10-,50-day MAs.

Further, the relative strength index is reporting bearish conditions with a below-50 print.

The stage looks set for a drop to the July 17 low of $9,049.