The largest Cryptocurrency dropped 10 percent on Wednesday in a vicious move and hit all the stop losses below the 6,000 USD level, which helped to push the price down and it has settled at around 5,550 USD for now. These levels were last seen in October 2017, but more importantly, the decline below the key support of 6,000 USD has confirmed the longer-term bearish view.
The next support might be at 5,200 USD, but bears may want to bring the price down to the psychological level of 5,000 USD. From the long-term view, the target for bears could be at the 200-week moving average, which is currently at 3,060 USD.
On the upside, the main resistance is now at the mentioned level of 6,000 USD and while the Bitcoin trades below, the outlook seems bearish.
The Bitcoin seems to be very oversold on the daily chart, which could lead to a possible relief rally, but before that, we might see another leg down first to the mentioned support of 5,200 USD.
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