Bears In Control as Bitcoin (BTCUSD) Hits Fresh Six-Month Lows

Βitcoin – BTCUSD had a nasty weekend, and the downtrend continues today as BTCUSD gives up 3.11% at 6,693 making fresh six month lows. The sell-off in cryptocurrencies started on Friday after the warning from People’s Bank of China that cryptocurrencies remain unauthorised illegal public financing and investors must be careful on virtual currencies.

Bitcoin capitalization has dropped to 121.46 billion the lowest level since May, while the 100 biggest capitalization has dropped to 183.41.

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Bitcoin Technical Outlook

BItcoin after the intense selling pressure the last three trading sessions have reached extreme oversold levels as indicated by the RSI (14) index at 20.72.

Bitcoin sellers now target the $6,203 low from May 17th. In case the bitcoin breaks below that level a move down to $6,000 round figure will be the next support. Next level to watch on the downside is the $5,705 low from May 8th.

On the upside, immediate resistance will be met at $6,945 daily high, while a move up to the weekend high at 7,329 will be the next resistance. The oversold RSI index leaves room for a rebound but only a move above $7,500 might cancel the recent bearish momentum.More content