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.
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.
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