Bitcoin has found bids below $8,600 twice in the last 24 hours.
The cryptocurrency is currently priced around $8,750 on major exchanges. Prices had dropped to a low of $8,550 during the Asian trading hours.
A quick recovery from $8,520 to $8,700 was seen during the US trading session on Tuesday, following which prices rose to a high of $8,900.
The latest bounce from below $8,600 has likely run out of steam near $8,800.
The previous two hourly candles faced rejection just above $8,790, while the current hourly candle has run into offers near $8,780.
A head and shoulders (H&S) is being charted on a 5-minute chart. If a move through the H&S horizontal support line at $8,700 is seen, additional losses to $8,600 could follow.
On the flip side, bitcoin will likely have a go at $9,000 if the H&S high near $8,800 is breached with strong volumes.