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Bitcoin Working on Another Bearish Correction

The past week started with bitcoin rallying to 297 and then retreating. This retreat has become more than a small consolidation, and is turning into another significant bearish correction as we can see in the 4H chart. 

Bitcoin (BTCUSD) 4H Chart 8/1

(click to enlarge)

The 4H chart shows the virtual currency failing to continue the prevailing uptrend and giving way to another bearish corrective swing. If we get an ABC correction, btcusd has downside risk towards the 260 area. A bullish market should challenge the bearish attempt there. In fact, a bullish market might challenge btcusd's retreat even higher, around 270

Bitcoin (BTCUSD) Daily Chart 8/1

(click to enlarge)

In the daily chart, we can see that 270 represents a recent consolidation low and a rising trendline. A hold above 270 would be keep the uptrend intact. However, as we noted, a break below 270 can still be part of the bullish outlook if we find suport in the next key support area around 260.