Bitcoin downtrend intact
Since our last Bitcoin (BTCUSD) update on 15th May the cryptocurrency has continued its weakness, and is now approaching what may be something of a crossroads. The 14 & 60 day moving averages look likely to cross again, adding further downward momentum. Additionally, the negative trendline resistance currently at $8440 looks likely to remain intact, and whilst we don’t see any collapse ahead, we do expect to see a test of support around $6400. If that proves insufficient to arrest the decline then the next real support should be at $5100. We’d expect speculative Stop Losses to be lurking under that level and if they are triggered then the next $1,000 decline could come very quickly indeed as holders are squeezed out.