Bitcoin Price Faces Last Major Support Level Before $5K

Bitcoin risks falling to the key support level of $6,900, having failed to capitalize on signs of weakening bearish momentum yesterday.

A corrective rally remained elusive as bitcoin ran into offers above $7,400 and closed at $7,143 - the lowest daily close since April 12, according to Bitfinex.

Prices continued to drop today, with bitcoin hitting a 7-week low of $7,040 this morning.

The losses signal a continuation of the sell-off from the recent high of $9,990 and indicate scope for a drop to $6,900 - a level that the bulls need to defend at all cost.

The bearish outside-day usually indicates a bullish-to-bearish trend change.

The above chart also shows the 5-day and 10-day moving averages are trending south in favor of the bears.

According to historical data, bitcoin climbs every time the RSI on the daily chart drops to or below 30.00.

Further, BTC recently closed below the 50-week MA for the first time since 2015, adding credence to the argument the long-run bull market is over.

BTC has created lower lows in the last 48 hours, but the RSI has not followed suit - a bullish divergence that indicates scope for a minor corrective rally.

A break above the 50-week MA, currently seen at $7,702 would abort the bearish view.