Topping Out? Bitcoin Bulls Need to Defend $9K

Having hit seven-day lows below $9,000 this morning, bitcoin is looking decidedly weak.

Now, unless the bulls can make a defense of support at $9,055, the cryptocurrency risks once more falling below $8,000.

Bitcoin risks a deeper sell-off to $8,652 if the failure to beat inverse head-and-shoulders neckline hurdle is followed by a 4-hour close below the trendline support, currently seen at $9,055.

The relative strength index is holding well below 50.00, also signaling scope for further losses.

The action in the hourly chart below also suggests that BTC is risking a move downwards.

As of writing, BTC is trading on a weaker footing as indicated by the series of lower highs and lower lows, represented by the falling channel.

The bear flag breakdown, seen yesterday, also favors a drop below $9,055.

Note that the RSI has not formed lower lows in response to lower lows in prices.

View BTC will likely find acceptance below $9,055 and drop towards $8,652.

A daily close below $8,652 would mean the rally from the April 1 low of $6,425 has ended and the bears have regained control.