Bitcoin (BTC) Price Looks Like a Further Fall into Bear Market Territory
Bitcoin’s (BTC) reversal of the recent uptrend in prices is gathering pace and a drop deeper into Bear Territory below $6,200 is now a possibility, technical charts indicate.
The leading cryptocurrency found acceptance below the lower edge of the rising channel Thursday, invalidating the Bullish price action witnessed earlier on the week.
Essentially, the rally from the 31 October low at $6,201 has ended at a high of $6,540 reached on 7 November.
Currently, BTC is trading at $6,431.21 on having marked a 5-day low to $6,335.
The negative follow through to Thursday’s Bullish channel breakdown is an indication that the Bears are likely feeling emboldened, having pulled down prices by 2.9% from weekly highs.
As a result, the support of the trendline from the 11 October lows might be breached, opening the doors for a drop below the recent higher low of $6,200 (31 October).
As can be seen above, BTC has established a Bearish lower highs and lower lows pattern, validating Thursday’s Bullish channel breakdown.
Further, prices seem to have found acceptance under the crucial 200-Hr EMA support and the major EMA’s 50, 100 and 200 are beginning to roll over in favor of the Bears.
In particular, the 50-Hr looks set to cross the 100-Hr EMA from above, bolstering the already Bearish technical setup.
The drop below the immediate support of $6,330 (61.8% Fibo retrace), however, is likely to happen after a minor bout of consolidation, as RSI is showing oversold conditions below 30.00.
Over on the daily, the symmetrical triangle breakout and a close above the critical 50-Day EMA resistance witnessed earlier this week failed to produce significant price gains.
A failed breakout often ends up putting the Bears back into control, and hence a slide to $6,200 could be coming soon.