Bitcoin drops 15%, indicators show potential for decline to $6,500

In the last three hours, the BTC price dropped 15 percent breaking out to the downside of a technical pattern that predicts a further decline to $6,500.

The drop coincides with a Bitcoin hashrate drop of over 30 percent and a ruling on the Bitfinex Tether investigation.

Since June 26, after peaking at nearly $14,000, Bitcoin began consolidating.

This is considered a bearish pattern that shows decreasing demand for BTC. At the moment, Bitcoin is breaking below the lower support of the bearish formation signaling a potential 32 percent drop to $6,500.

A close below this level indicates a further decline that could take this cryptocurrency to hit the 61.8 or 65 percent Fibonacci retracement area.

Despite the bearishness, Bitcoin is on a red nine, which is a buy signal based on the TD sequential indicator.

If the 50 percent Fibonacci retracement zone is able to hold Bitcoin may bounce to the breakout point of the descending triangle or even the 38.2 percent Fibonacci retracement zone before it continues falling.

Bitcoin is finally breaking out of a consolidation phase that began nearly three months ago.

As a matter of fact, the top four altcoins took even bigger hits than Bitcoin, with Ethereum, XRP, Bitcoin Cash, and Litecoin down more than 14 percent or more.

Fundamentally, Bitcoin suffered from a sudden 33 percent drop in its hash rate over the last 48-hours, going from over 98 million terahashes per second to under 58 million.