Bitcoin bears set the ball rolling as BTC/USD slumps under $6,500

Cryptocurrency market is in the verge of an impressive collapse, Juniper Research says in its recent study devoted to Bitcoin and Altcoin trends. The experts name decreased transaction volumes and lower daily transaction values for Bitcoin as the key metrics pointing to an imminent market implosion. 

In the second quarter the transaction values on the cryptocurrency market as a whole plunged 75%, while market capitalization settled at $200B. 

“Based on activity during the first half of Q3, Juniper estimates a further 47 percent quarter-on-quarter drop in transaction values in that quarter,” Juniper says.

Also cryptocurrencies failed to respond to the risk aversion on a broader financial markets caused by strained China-U.S. trade relations and Brexit troubles, which is another ominous signal to the industry.

Bitcoin technical picture

BTC/USD touched $6,442 during early Asian hours, which is the lowest level since October 4. The price broke below critical support $6,500, which, if sustained, will set the bearish trend in motion with the next aim at $6,327 (September 25 low) and $6,2016 (September 17 low). The bulls have to regain ground above $6,500 as soon as possible to mitigate bearish pressure and return the coin within the recent consolidation pattern. In this case, the recovery may be extended towards $6,555 (the broken upside trendline). While the short-term picture looks gloomy following today’s breakout, on a broader scheme of things not all is lost as long as BTC stays above $6,000. 

BTC/USD, 1-hour chart