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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

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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