Bitcoin Risks Deeper Drop After Shallow Price Bounce

Bitcoin risks revisiting Thursday's low of $7,072, having charted a shallow bounce in the last 24 hours.

The three-day chart indicates scope for a deeper drop toward recent lows near $6,500.

The outlook will remain bearish as long as the lower high at $7,870 is intact.

Bitcoin is again looking weak, having charted a shallow bounce from two-week lows in the last 24 hours.

Credible signs of seller exhaustion had emerged on the intraday technical charts following Thursday's drop to $7,072 - the lowest level since Nov. 24.So far the rebound has been anything but impressive.

The lackluster bounce indicates sentiment is still quite bearish.

Further, fresh bearish signs have emerged on longer durations, too, indicating scope for a slide to recent lows.

The ascending channel breakdown seen on the hourly chart indicates the bounce from two-week lows has fizzled out and a fresh drop toward $7,072 and possibly to $7,000 may be in the offing.

Bitcoin created a bearish "Outside bar" candlestick pattern in the three days to Dec. 11.

In BTC's case, the candle indicates the corrective bounce from $6,500 has ended and the bears have regained control.