Bitcoin (BTC) is once more facing a drop to (or below) $6,000, with both short- and long-duration charts being aligned in favor of the bears.
The cryptocurrency found acceptance above the key resistance of $6,425 (April 1 low) in the second half of last week, raising the prospects of a corrective rally towards the $7,000 mark.
Further, while a fall to $6,000 following a bear flag breakdown on Friday seemed likely, losses were unexpectedly cut short at $6,300, signaling bearish exhaustion.
Yet, the leading cryptocurrency did not find any takers over the weekend, leaving trading flat-lined above $6,500.
Courtesy of the drop from $6,573 (Sunday’s high) to $6,370 (today’s low), the short duration charts have now turned bearish. Meanwhile, the long duration charts continue calling a bearish move.
As of writing, BTC is changing hands at $6,430 on Bitfinex – down 1.3 percent over 24 hours and is looking southwards.
BTC’s drop to $6,370 earlier today confirmed a downside break of the pennant – a bearish continuation pattern indicating the sell-off from the high of $7,638 has resumed.
As a result, the cryptocurrency could slide to $5,820 (target as per the measured height method, i.e. the difference between the pennant high and low subtracted from the breakdown price).
The moving averages (MAs) are also biased bearish, with the 50-candle, 100-candle and 200-candle MAs all trending south…