Bitcoin's drop to three-week lows today has likely kick-started a bearish move towards the major support at $6,000, technical charts indicate.
The leading cryptocurrency fell to $6,252 at 7:15 UTC on Bitfinex - the lowest level since Sept. 19 - and was last seen trading at $6,300, representing a 5-percent drop on a 24-hour basis.
Further, the big drop in the equity markets this morning may not bode well for BTC, as the cryptocurrency is still being treated as a risk asset.
As a result, bitcoin price volatility, as represented by Bollinger bandwidth and the gap between weekly high and low, fell to 21-month lows and 15-month lows, respectively, last week.
A prolonged period of low volatility usually makes way for a big move in either direction.
In BTC's case, that move looks to have already started to the downside, with a breach of the lower band, and may move further towards $6,000.
The bearish view put forward by the negative crossover between the 5-month and 10-month EMAs has gained more credence, courtesy of BTC's failed breakout and a drop to three-week lows.
BTC's drop to lows below $6,300 comes a day after the Dow Jones Industrial Average shed 800 points.
Looking ahead, the equities could drop further, courtesy of the rising bond yields, and push BTC lower.
A violation there would allow a deeper drop to $5,870 - support of the trendline drawn from the June low of $5,755 and the August low of $5,859.
4 Reasons Why Bitcoin's Price Could Now Drop to $6K
Published on Oct 11, 2018
by Coindesk | Published on Coinage
Mentioned in this article
Crypto Exchange Coinbase Open-Sources Its Security Scaling Tool
U.S.-based cryptocurrency exchange Coinbase is making a recently developed automated security scaling tool available to the public.
World's Largest Crypto Exchange Binance Looking to Add New Stablecoins
Binance, the world's largest cryptocurrency exchange by adjusted volume, is actively looking to list more stablecoins in addition to the three it already supports, which include the recently beleaguered tether.
Judge Orders Trading Firm, CEO to Pay $2.5 Million in Bitcoin Ponzi Case
The Commodity Futures Trading Commission has won a legal battle against a New York resident and his company for running a Ponzi scheme centered around bitcoin.
Are Mastercard and VISA Cutting Out Unregulated Crypto Brokers and ICOs?
On October 12, Finance Magnates reported that payment giants Mastercard and VISA will both soon group cryptocurrency and Initial Coin Offering jurisdictions in a new "High risk" category.