On Saturday, Bitcoin bulls were afforded a glimmer of hope as the cryptocurrency jumped 8% from the Friday low of $7,400. Though, this hasn’t lasted. As of the time of writing this article, BTC has just tapped $6,600 — the lowest the cryptocurrency has traded at since the middle of May earlier this year — and is trading down some 6.66% (yeah ominous, I know) in the past 24 hours.
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Some say this corroborates the idea that the cryptocurrency heads lower in the coming hours. Trader Walter Wyckoff noted earlier Sunday that Bitcoin is likely to close the week under $7,500, the 100-week moving average. And it did.
This is important as the last time BTC closed under this support level, the cryptocurrency’s price fell by 35% in the three weeks that followed. If history repeats, Bitcoin could drop to the high-$4,000s or low-$5,000s and then bottom from there, then begin its next leg higher.
There’s also an analysis of Bitcoin’s one-day Relative Strength Index (RSI) from Byzantine General, which implies that the cryptocurrency will continue to bleed out towards the low-$6,000s and potentially high-$5,000s before relief is found at last.
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