Editor's Note: Welcome to Kitco's new Bitcoin Daily Technical Alert. Every trading day veteran Kitco technical analyst Jim Wyckoff will provide you with a concise and easy-to-understand near-term technical brief on Bitcoin. Importantly, Jim will glean the short-term charts and technical studies, and then alert you to the signals he sees regarding upcoming potential bigger price moves or price trend reversals. Jim's unique and exclusive daily technical report is an absolute must for any trader/investor/market watcher who closely follows Bitcoin.

(Kitco News) - Bitcoin-U.S. dollar prices have stabilized early this week, after the huge downdraft seen last week. The major sell off last week is still a solid technical clue the bulls became exhausted and that a near-term market top is in place. Serious near-term technical damage was inflicted, including a steep price uptrend on the daily chart being negated on big volume. Markets price history, in similar situations to the present in Bitcoin-U.S. dollar, shows prices may make a quick rebound to give the bulls some hope, but then run out of gas before reaching a new high.