Bitcoin Price Faces Drop to $6.1K After Range Breakdown

Bitcoin's downside break of a recent trading range has likely opened the doors for a drop to key support at $6,100, technical charts indicate.

The leading cryptocurrency, which was sidelined above $6,400 for ten days straight, fell to two-week lows near $6,200 yesterday, confirming a range breakdown.

A prolonged period of extremely low volatility ended with a sell-off yesterday the ensuing bearish move could be a big one.

To cut the long story short, BTC's drop to two-week lows is a bearish development, but it's close proximity to strong support levels calls for caution.

As seen in the above chart, the 5-day and 10-day EMAs have rolled over in favor of the bears following yesterday's range breakdown.

So far the bulls have failed to produce a meaningful bounce, despite the repeated bear failure to beat the EMA support.

The bear market would resume if the cryptocurrency closes below the 21-month EMA tomorrow.

View The range breakdown could yield a drop to major supports lined up at $6,100.

A UTC close today below the trendline support of $6,094 would bolster the already bearish setup and boost the prospects of a monthly close below the 21-month EMA. A UTC close above the 10-day EMA of $6,355 would weaken the bearish pressure.

Water drop image via Shutterstock; charts by Trading View.