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BTC looks set to register its biggest weekly loss of 2019, having fallen by 20 percent since Monday.
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The cryptocurrency has found acceptance below the key 200-day moving average and risks extending the drop to support near $7,500 over the next few days.
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A 4-hour chart indicator is calling a corrective bounce, but it will likely be short-lived.
Bitcoin is on track to post its biggest weekly loss of 2019, having found acceptance below key support for the first time in nearly six months.
The top cryptocurrency by market value is currently trading at $8,030 on Bitstamp, representing a 20 percent drop from this week’s (Monday’s) opening price of $10,022. That is the biggest weekly loss of 2019 assuming prices remain at similar levels until Sunday’s UTC close.
The biggest loss of 2019 so far was a 13 percent fall back in the second week of January, so any greater loss this week would be the most severe of the year to date.
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As seen above:
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Bitcoin looks set to confirm its 16th weekly loss of 2019.
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The cryptocurrency has registered double-digit weekly losses only twice in the first six months.
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Prices have registered double-digit weekly losses four times in the third quarter.
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The 13 percent drop seen in the second week of January turned out to be a bear trap:s prices bottomed out around $3,300 over the next five weeks before breaking into a bull market in April.
The latest two-figure drop, though, indicates the bull market from April’s lows near $4,000 has ended and the sellers have regained control.
It’s worth mentioning that the cryptocurrency has found acceptance below the 200-day MA for the first time since April 2. The breakdown of the long-term support has further confirmed a bullish-to-bearish trend change. The average is currently located at $8,352.
All-in-all, a corrective bounce, if any, over the weekend will likely be short lived and the cryptocurrency could close below $8,719 on Sunday, confirming the biggest weekly loss of 2019.
Weekly chart
Related: Why Bitcoin Tumbled Below $8K
BTC has dived out a narrowing price on the weekly chart, confirming a bearish reversal.
The 14-week RSI has dipped below 50 for the first time since the end of March. A reading below 50 indicates bearish conditions.
The MACD histogram is producing deeper bars below the zero line, also indicating a strengthening of bearish momentum.
4-hour and daily charts
On the 4-hour chart, the RSI has produced higher lows, indicating scope for a corrective bounce. Further, the 14-day RSI is reporting oversold conditions with a sub-50 print.