The signs were already building yesterday, with sellers testing the waters below the 200-day moving average (blue line). That is eventually leading to a break of the May low today and the momentum continues to run. Well, it’s definitely not looking pretty on the charts.
In terms of catalysts, people are pointing to Mt. Gox flows as one of the reasons. But it’s crypto, so really anything is possible I would say. Meanwhile, the bulls are continuing to argue that all of this is fluff and doesn’t change the long-term view of Bitcoin.
Make what you will but the chart doesn’t lie at least. And it is showing that things have definitely taken on a more bearish turn for Bitcoin.
The drop now sees $50,000 as the next potential mark. The 61.8 Fib retracement level of the swing higher this year stands at around $51,998, so that might also offer up some minor support.
As the mood music turns more bearish, we’re also seeing Ether on the verge of cracking as well:
This article was written by Justin Low at www.forexlive.com.
