Bitcoin price analysis: BTC/USD licking wounds at $5,860 after losing 4% in a single hour
|- Bitcoin is below $6,000 the second time in a week.
- The bearish sentiments are caused by increased pressure from state authorities.
Bitcoin is rangebound at $6,100, off the early Asian low at $5,983. The digital currency No. 1 is down 4% on a daily basis and mostly unchanged since the beginning of the Asian session, with market value $100B and average daily trading volume $3.4B. The coin shed about $4M of its value in a few hours.
Bitcoin dropped below $6,000 handle for the second time in a week and lost about 20% in June alone. While there are no clear fundamental triggers that can explain the strong bearish momentum late on Thursday, the movement is large scale, as all major coins are thick in the red.
Experts believe, that an increased pressure from the state authorities around the globe to be the main reason behind the sell-off. According to Jim Iuorio from TJM Institutional Services, this is not the end: Bitcoin will continue sliding unless governments change their position.
Bitcoin technical picture
A drop below $6,000 has spoiled the technical picture. BTC/USD continues to move within a bearish channel with the upper line currently at $6,150, followed by a pivotal $6,483. This is a bare minimum for the bulls, required to mitigate the selling pressure. On the downside, the immediate support comes at Sunday's low at $5,777, followed by $5,550 (November 12 low).
BTC/USD, the daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.