Treading Water: Bitcoin Bulls Await Break Above $7,780

Bitcoin continues to operate in bearish territory and only a move above $7,780 would put the bulls back into the driver's seat, the technical charts indicate.

Sellers ran out of steam at $7,372, as indicated by a doji candle and prices moved back above $7,600 in the Asian session today.

The cryptocurrency is down more than 30 percent from the recent high of $9,990, meaning the bulls are on the back foot.

So bitcoin could turn higher today, as indicated by the historical pattern.

That said, the cryptocurrency is still treading waters in the bearish territory, as seen in the chart below.

The bearish rising-wedge breakdown remains valid as long as bitcoin keeps trading below $7,780.

The 50-candle moving average has started rising in favor of the bulls and the 100-candle MA has flatlined, so the odds of a break below $7,372 are low.

View A high volume break above $7,780 would add credence to the quirky "6th of the month" pattern and signal a bullish trend reversal.

A break below $7,372 would put the focus back on the rising-wedge breakdown and allow a drop to $7,040.

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