Bitcoin drops again, faces mounting technical pressure

After what looked to be a hold of the $60,000 mark has quickly turned ugly for Bitcoin. The cryptocurrency dipped in trading yesterday and is continuing that drop today under the figure level. Of note, the low earlier even briefly touched below $57,000 and is threatening a bigger break on the charts.

The 200-day moving average (blue line) is now under threat and a firm break below that will be the first since October last year. In turn, that will turn the technical momentum to being more bearish in Bitcoin.

For buyers, there is still some hope with the 1 May low coming in at $56,500. However, the break of the 200-day moving average should see sellers gather more conviction to push for a stronger downside move. As such, this key level might not hold up too well.

If the technicals are anything to go by, that could lead to a quick drop towards $50,000 next at least in Bitcoin; for starters at least.

This article was written by Justin Low at www.forexlive.com.