Bitcoin’s buyers successfully defended the $8,200 handle earlier today and have pushed the cryptocurrency higher to $8,400.
The bounce, however, does not change the short-term bearish setup. The cryptocurrency remains in a corrective mode with prices yet to take out the resistance at $8,460 (former support).
The dip below the horizontal line, marking support at $8,290 was quickly reversed and the cryptocurrency ended up producing a green candle with a long lower wick – usually taken as an early warning of bullish reversal.
In this case, however, prices would need to cross resistance at $8,460 with conviction to abort the immediate bearish pressure.
Traders should note that a move above $8,460 would push the cryptocurrency in a “no man’s land” and only a move through resistance at $8,792 (Wed’s high) would imply bullish revival.