Bitcoin Faces Fresh 2018 Lows After Close Below $6,000 Support

Bitcoin could post new 2018 lows over the weekend, having found acceptance below key price support.

Despite signs of a possible corrective rally seen earlier yesterday, the leading cryptocurrency closed below $6,000 for the first time since November 12, signaling a downside break of a major support.

While the bears had briefly pushed prices down to $5,755 last Sunday, a close below $6,000 had remained elusive.

Despite the drop below support, bitcoin is still outperforming most other cryptocurrencies and is now at 11th place on the list of best performing top-100 cryptocurrencies by market capitalization.

The close below $6,000 support has bolstered the already bearish technical setup as indicated by the falling channel, downward sloping 5-day and 10-day moving average.

Further, bitcoin is trading well below 50-day, 100-day and 200-day MAs, indicating that the long-term bias is bearish.

What's more, the long-term averages are aligned one below the other and are trending south.

The drop below $6,000 also adds credence to the pennant breakdown seen in the weekly chart and the bearish crossover between the 5-month and 10-month moving average.

View Short-term outlook: Bearish, having closed below $6,000 yesterday.

BTC could break below $5,755 and could extend the decline towards the next major support located at $5,400.