Down two-thirds from its peak of $20,000, bitcoin now risks printing fresh 2018 lows below $5,755.
As a result, the leading cryptocurrency fell below $6,000 and extended the slide to $5,859 earlier today - the lowest level since June 29 - according to Bitfinex data.
Further, the bitcoin dominance rate, a measure of BTC's market share, jumped to an eight-month high of 53.7 percent today.
It seems safe to say that the cryptocurrency markets have turned risk-averse, that is, investors are venturing out of the high-risk alternative cryptocurrencies and into well-established cryptocurrencies like BTC, and then possibly on to fiat currency.
Looking ahead, the risk aversion could worsen as the price chart analysis is calling a deeper sell-off in the world's largest cryptocurrency by market capitalization.
As the above chart shows, BTC could encounter support around $5,650.
The cryptocurrency could defend the support at $5,650 in the short-term as the cryptocurrency is looking oversold, having dropped more than 40 percent over the last three weeks.
A high volume break above the falling trendline seen in the 4-hour chart would confirm a short-term bearish-to-bullish trend change and would allow a rally to $6,850-$7,000.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Under Pressure: Bitcoin Price Could Defend $5.6K, Charts Say
Published on Aug 14, 2018
by Coindesk | Published on Coinage
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