Bitcoin (BTC) is once more facing a drop to (or below) $6,000, with both short- and long-duration charts being aligned in favor of the bears. The cryptocurrency found acceptance above the key resistance of $6,425 (April 1 low) in the second half of last week, raising the prospects of a corrective rally towards the $7,000 mark.
Further, while a fall to $6,000 following a bear flag breakdown on Friday seemed likely, losses were unexpectedly cut short at $6,300, signaling bearish exhaustion. Yet, the leading cryptocurrency did not find any takers over the weekend, leaving trading flat-lined above $6,500.
Courtesy of the drop from $6,573 (Sunday’s high) to $6,370 (today’s low), the short duration charts have now turned bearish. Meanwhile, the long duration charts continue calling a bearish move.
As of writing, BTC is changing hands at $6,430 on Bitfinex – down 1.3 percent over 24 hours and is looking southwards. BTC’s drop to $6,370 earlier today confirmed a downside break of the pennant – a bearish continuation pattern indicating the sell-off from the high of $7,638 has resumed.
As a result, the cryptocurrency could slide to $5,820 (target as per the measured height method, i.e. the difference between the pennant high and low subtracted from the breakdown price). Read more from coindesk.com…
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