$6K in Sight? Bitcoin Price On Edge of Correction

Bitcoin looks set to revisit November lows after a 22 percent drop, but a minor corrective rally looks to be in the offing beforehand.

At time of writing, CoinDesk’s Bitcoin Price Index (BPI) is seen at $8,228, having clocked a five-week low of $7,676 earlier today. Meanwhile, BTC’s global average price on CoinMarketCap is $8,293 – down 7.44 percent in the last 24 hours.

Prices fell nearly $1,300 on Wednesday, a move reportedly influenced by Google’s decision to ban online advertisements promoting cryptocurrencies and related products. The restriction would come into effect from June.

However, even before the announcement from the search giant, the technical chartsfavored a downside move. The sell-off has sent BTC bulls packing and the cryptocurrency faces the risk of further downside in the days ahead.

4-hour chart: Bear flag breakdown confirmed

Bitcoin fell below the flag support of $8,600 yesterday, signaling the sell-off from the recent high of $11,700 has resumed.

Accordingly, losses extended to lows below $7,700 today and could further decline to $5,500 (target as per the measured height method, discussed yesterday) in the next couple of weeks.

Daily chart: Bearish doji continuation pattern

Tuesday’s “inside day” doji candle highlighted bullish exhaustion around the critical double top neckline resistance (former support) of $9,280.

Further, Wednesday’s negative follow-through confirmed that the corrective rally from the March 9 low of $8,342 has ended and signaled a revival of the downtrend. The pattern only adds credence to the bear flag breakdown seen on the 4-hour chart…

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