Failed Bull Breakout Leaves Bitcoin Eyeing Drop to $8K

Bitcoin's failed bull move on Sunday has left the doors open for the bears to make a comeback.

The inverse head-and-shoulders breakout on May 20 signaled a short-term bullish reversal that could have seen bitcoin rise to $9,000.

The bulls ran out of steam at a high of $8,644 yesterday and prices had fallen back to $8,240 at time of writing - a drop of 2.8 percent over the last 24 hours, according to Bitfinex.

The decline did not come as a surprise given the breakout lacked volume support, and a drop to $8,000 could now be on the cards.

As seen in the chart above, BTC fell back below the inverse head-and-shoulders neckline yesterday, weakening the bulls and has established a lower-high and lower-low pattern.

Thus, prices could drop below the immediate support of $8,207 seen in the daily chart below.

A break below $8,207 would bolster the bearish setup seen in the hourly chart and would allow a drop to $8,000.

View BTC looks set to take out support at $8,207 and drop to $8,000 in the next 24 hours.

A daily close below $8,000 would signal a revival of the sell-off from the May 5 high of $9,990.

On the higher side, a move above $8,408 would open the doors to $8,858.