Bitcoin Price Eyes $6.2K Amid Further Drop into Bear Territory

Bitcoin's reversal of the recent uptrend in prices is gathering pace and a drop into a bearish territory below $6,200 is now a possibility, technical charts indicate.

The leading cryptocurrency found acceptance below the lower edge of the rising channel yesterday, invalidating the bullish price action witnessed earlier this week.

Essentially, the rally from the Oct. 31 low of $6,201 has ended at a high of $6,540 reached on Nov. 7.

At press time, BTC is trading at $6,350 on Coinbase, having clocked a five-day low of $6,335 soon before press time, following a sudden $100 drop.

As a result, the support of the trendline from Oct. 11 lows could be breached in the next few hours, opening doors for a drop below the recent higher low of $6,200.

As can be seen above, the cryptocurrency has established a bearish lower highs and lower lows pattern, validating yesterday's bullish channel breakdown.

The drop below the immediate support of $6,330 is likely to happen after a minor bout of consolidation as the relative strength index is reporting oversold conditions below 30.00.

Over on the daily chart, the symmetrical triangle breakout and a close above the critical 50-day EMA resistance witnessed earlier this week failed to produce significant price gains.

View A combination of the failed breakout on the daily chart and the bearish setup on the hourly chart indicates that cryptocurrency could soon drop below $6,274 and drop below $6,200.

A UTC close below $6,200 would invalidate the higher lows pattern seen on the daily chart, shifting risk in favor of a drop to the psychological support of $6,000.