$6K Next? Bitcoin Bear Market Back After 10% Drop

The bitcoin market has come alive in the last 36 hours, with the bears gaining the upper hand and now aiming for fresh 2018 lows below $6,000.

The cryptocurrency dropped nearly 10 percent on Sunday, hitting a two-month low of $6,619 on Bitfinex, having spent the last two weeks trading in the narrow range of $7,000-$7,800.

Across the media, the price drop has been put down to a hack on South Korean exchange Coinrail, revealed Sunday, and renewed concerns regarding security at cryptocurrency exchanges.

Either way, the technical studies now spell trouble for bitcoin.

The convincing move below $7,000 marks a downside break of the four-month-long narrowing price range and has opened the doors for a drop below $6,000.

Prices closed well below the pennant support yesterday, implying a downside break of the pennant pattern and a resumption of the sell-off from the December high.

Bitcoin looks set to extend the decline over the next couple of weeks.

The extreme oversold conditions as shown by the relative strength index could put a temporary bid under bitcoin.

View The pennant breakdown indicates that bitcoin could drop below $6,000 in a week or two and may extend the losses to the 100-week MA of $4,496 over the following weeks.

A minor corrective rally to $7,000-$7,240 could be seen in the next 48 hours before further sell-off.