Bitcoin Looks for Price Support After Failed $10K Crossover

As of writing, bitcoin is changing hands at $9,400, representing a 2.67 percent drop from the previous day's close of $9,658.

While the pullback is not good for the bulls, only a drop below $8,650 would give the bears the upper hand.

The above chart shows the pullback occurred after BTC was rejected at the inverse head-and-shoulders neckline resistance of $9,950.

As noted above, BTC had looked on a solid ground following the bull pennant breakout, so the drop to $9,300 came as something of a surprise and has neutralized the immediate bullish outlook.

The daily chart shows that the 10-day MA is sloping upwards, providing more cause for bull optimism, especially if today's candle closes above the 10-day MA. On the other hand, if BTC closes below the 10-day MA, then the case for a further drop towards $8,652 would strengthen.

Repeated failure on the part of the bears to keep prices below the ascending 100-candle MA on 4-hour chart, and a close today above the 10-day MA of $9,468, could yield re-test of $10,000.

A close above the inverse head-and-shoulders neckline resistance seen today at $9,980, would open the doors to $13,475, although the target looks far-fetched for now.

In the short-run though, BTC could rise to $11,700 on the back of an inverse head-and-shoulders breakout.

Bearish scenario: A break below $8,652 would add credence to rejection at inverse head-and-shoulders neckline resistance and signal a short-term bullish-to-bearish trend change.

In such a case, BTC will likely drop to levels below $8,000.