Bitcoin Price Looks South After Drop to Six-Week Lows

Bitcoin ended a two-week period of consolidation with a drop to six-week lows earlier today.

BTC ended a multi-week-long trading range with a move below $6,000 on Nov. 14 and what followed was a violent sell-off to levels below $4,000.

The latest range breakdown could at least yield re-test of December lows near $3,100, as the primary trend represented by the downward sloping 10-week moving average is negative.

At the time of writing, BTC is changing hands at $3,430, representing a 3 percent drop on a 24-hour basis.

On the daily chart, BTC charted a bearish gravestone doji on Saturday, meaning the day began with a positive move but ended flat on the day.

Adding to the bulls' woes is the negative follow-through as represented by the drop to six-week lows today.

As a result, BTC may revisit $3,500 before resuming the drop toward the December lows.

Further, a sustained drop in trading volumes likely indicates bearish exhaustion.

The outlook would turn bullish if BTC ends this week above the doji candle high of $3,658.

View BTC risks falling to the December low of $3,122 in the next few days, having confirmed a range breakdown with a drop to six-week lows today.