Price Dip Leaves Bitcoin Exposed to $7.2K Support

View Bitcoin suffered a contracting triangle breakdown on Wednesday, as expected.

The range breakdown is backed by bearish developments on the daily and 4-hour chart indicators.

The outlook would turn bullish if the price finds acceptance above $8,050 in the next 24 hours.

Bitcoin dived out of a narrowing price range on Wednesday, opening the doors for a deeper drop to $7,200.

The period of indecision ended with sellers gaining an upper hand, and the resultant range breakdown neutralized the immediate bullish view put forward by the near 13 percent price rise seen on Sunday.

Looking forward, the focus is on the key support at $7,200- a level the bulls must defend, as a break lower would confirm a short-term bullish-to-bearish trend change on the technical charts.

The range breakdown is backed by a bearish below-50 reading on the relative strength index and a drop into bearish territory below zero on the the moving average convergence divergence histogram.

Further, the daily MACD has turned bearish for the first time since May 2 and the RSI continues to create bearish lower highs.

The outlook would turn bullish if prices rise above $8,050 in the next 24 hours, contradicting the bearish developments on the short-term charts.

Bitcoin image via Shutterstock; technical charts by Trading View.