Bitcoin Price Risks Another Fall Below $6K, Charts Say

After a drop yesterday, bitcoin risks another move below $6,000 in the next 24 hours, but it will still likely fare better than other cryptocurrencies.

On Tuesday, bitcoin closed below the immediate support of $6,108, pouring cold water over the prospects of a corrective rally above a major technical hurdle at $6,425.

Even if a drop in prices is seen, bitcoin could still outperform other cryptocurrencies, as a break below $6,000 could trigger risk aversion in the markets, forcing investors to venture out of high-risk alternative cryptocurrencies and into bitcoin.

Further, BTC closed below the immediate support of $6,108 yesterday, putting the focus back on the broader bearish outlook, as indicated by the falling channel and downward sloping Bollinger Bands.

BTC could drop below $6,000 in the next 24 hours.

The fiat money tends to flow into cryptocurrency markets via major assets like BTC and is then rotated into alternative cryptocurrencies once the bitcoin valuations look overstretched.

Further, the rotation of money from bitcoin and into alternative cryptocurrencies is usually a sign the investors are eager to take more risk.

Accordingly, the bearish breakdown seen in the chart below indicates that risk aversion will likely increase in the short-run and the alternative cryptocurrencies will post bigger drops than bitcoin.

ETH/BTC could be heading lower towards 0.0655BTC. View BTC could drop below $6,000 and could test immediate support of $5,755 and $5,711.

BTC will likely outperform other cryptocurrencies as indicated by the bearish breakdown on ETH/BTC chart.