Bitcoin's Price Breaks Through Support As Stocks Go South

Bitcoin has dropped out of the tight trading range seen recently, paralleling losses in the U.S. stock markets.

The bullish technical setup failed and BTC found acceptance below the triangle support of $6,430 at 17:30 yesterday, possibly due to risk aversion in the U.S. equities - the S&P 500 opened on a negative note Thursday and closed with a 1.4 percent loss.

Of late, the S&P 500 index has been leading the BTC market by 12 hours or more.

At press time, BTC is changing hands at $6,380 on Coinbase, representing a 1.19 percent drop on a 24-hour basis.

Further, the stacking order of the 50-hour EMA below the 100-hour EMA, below the 200-hour EMA is a classic bear signal.

BTC has likely carved out a classic bottom around $6,000.

Since June 2016, the S&P 500 has repeatedly found buyers around the 200-day MA. As a result, the dips to or below the MA have been short-lived.

If the index finds acceptance below the 200-day MA, then the risk aversion will likely worsen and that could push BTC below the all-important level of $6,000.

S&P 500's sustained move below the 200-day MA could be considered a warning that BTC is about to break below $6,000.

Bitcoin image via Shutterstock; charts by Trading View.