Bitcoin drops but might not be out

Having defended the key support of $7,455, the bitcoin bulls now need a quick move higher in order to neutralize the threat of a short-term bearish reversal.

 As of writing, the cryptocurrency is trading at $7,481 on Bitfinex – down 12 percent from the recent high of $8,507. However, that still marks a gain of more than 30 percent from the June 24 low of $5,755. 

 So, it is safe to say the bullish trend is still intact. Further, BTC's solid defense of $7,455 (38.2 percent Fibonacci retracement of the rally from the June low) seen in the last 28 hours has raised the prospect of a minor corrective rally. 

 However, the bulls have little margin for error and the upside needs to gather traction soon as the short-duration technical studies have already adopted a bearish bias, as seen in the chart below. 

*BTC's solid defense of $7,455 (38.2 percent Fibonacci retracement) is encouraging, but a positive follow-through needs to happen soon to invalidate the short-term bearish technical studies.

*A lack of positive follow-through in the next few hours will likely yield a drop below $7,455.

*A daily close (as per UTC) below $7,455 would confirm a short-term bullish-to-bearish trend change and would    open the doors to $7,000 (psychological support).

*On the higher side, a close (as per UTC) above $8,000 would put the bulls back into the driver's seat.