Bitcoin price slides below key support to bring risk of further declines

Despite widespread gains over recent months, the Bitcoin price has dropped below a key support level to raise the likeliness of further declines.

Bitcoin Source: Bloomberg

The Bitcoin price has tumbled over the beginning of this week, with the day currently looking set to post the second-biggest daily loss in more than six months.

The lull seen throughout the first four months of 2019 has certainly become a thing of the past, with the price of Bitcoin looking to have bottomed out after a nail-biting 2018 for HODLers. Indeed, those long-term holders are finally getting their just rewards, with Bitcoin gaining 100% in just over two months.

Further downside to come?

However, despite the recent gains, we have seen a bearish signal take hold this week, with sharp declines taking us back below the crucial $8003 level. That break not only provides us with a lower low, but also confirms the lower high after we saw a failed attempt to break into a new high last week. This break lower has been accompanied by momentum, with the stochastic oscillator breaking into a new low after failing to respect an ascending trendline. As such, we are looking at the first oversold position for Bitcoin since early April.

Now the $8003 support level has been broken, it looks like any subsequent move could be a retracement before we move lower once again. Only with a break through $8832 would we look at this in a more bullish sense.

Bitcoin chart Source: ProRealTime

Bitcoin chart Source: ProRealTime


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