Bitcoin stumbles further, now down 6% on the day

The optimism is starting to wane for Bitcoin as it looks poised to solidify a drop back below the $70,000 mark. Price is now trading back to $66,000 levels and that marks a 6% decline for the day thus far. Looking at the near-term chart, the technicals signs are growing more negative as well:

The run lower since yesterday took out both the 100-hour (red line) and 200-hour (blue line) moving averages, reaffirming a more bearish near-term bias currently.

Considering the breathtaking pace from which the cryptocurrency has rallied from around $44,000 to $73,000 in just one month, the correction lower here might be quite a painful one to deal with.

Then again, Bitcoin did also suffer a 6.6% drop in Tuesday trading last week. It recovered strongly after but the difference here is that the near-term technical levels are being broken and the candle pattern being formed does look rather toppish.

Has the hype train run its course?

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