The bitcoin market has come alive in the last 36 hours, with the bears gaining the upper hand and now aiming for fresh 2018 lows below $6,000.
The cryptocurrency dropped nearly 10 percent on Sunday, hitting a two-month low of $6,619 on Bitfinex, having spent the last two weeks trading in the narrow range of $7,000–$7,800.
Across the media, the price drop has been put down to a hack on South Korean exchange Coinrail, revealed Sunday, and renewed concerns regarding security at cryptocurrency exchanges.
However, a big move was expected anyway – as an extended period of consolidation or low volatility is often followed by a sharp move on either side – and prices started falling Saturday, so the breach at a minor exchange seems an unlikely cause.
Either way, the technical studies now spell trouble for bitcoin. The convincing move below $7,000 marks a downside break of the four-month-long narrowing price range and has opened the doors for a drop below $6,000 (Feb. 6 low).
As of writing, BTC is changing hands at $6,773 on Bitfinex – down 6.4 percent in the last 24 hours.
The cryptocurrency created a pennant in the last four months, signaling that the sell-off from the December record high of $19,891 had ended at $6,000…