Although bullish on a longer time frame, bitcoin has shown bearishness on the lower time frame on multiple occasions. As it has been hovering in the $9,000 range for more than a month, the price looks increasingly bearish.
With the market cap of $173 billion, the coin has seen a 1% surge in the last 24 hours. Catching a break from its nasty fall of $800 [$9,800 to $9,000], there are signs of a continuation of this drop.
Bitcoin’s one-hour chart
From the chart, it can be seen that the price is forming a pennant, more precisely, a bearish pennant, which also happens to be a continuation pattern. Thus, another drop seems inevitable. Making things worse is its correlation with the stock market; as the Dow Jones suffered a drop a few days ago, so did bitcoin.
Additionally, the formation of a hidden divergence between the price and RSI has also favored the bearish scenario. A hidden bearish divergence is when the price forms a lower high and RSI forms a higher high.
In combination, the bearish pennant pattern formation and bearish divergence make a bearish case for Bitcoin, in the short term. Hence, the likely targets include, $9,282, $9,208, $9,138, and $9,033.
The short term nature of Bitcoin is, no doubt, bearish, however, what can be debated is the extent of the drop. As mentioned above, the price in the next 24-48 hours could drop anywhere from $9,200 to $9,000. On the daily time frame, the coin looks bearish as well and a drop in the lower time frame [of one-hour] could be the initial momentum required for the price to start its breakout from the parallel channel that has been forming for over 3 months [since the Black Thursday drop].
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