Bitcoin’s recent stumble could turn into a full-blown tailspin, testing its strong support level of $6,000 again, according to a leading technical indicator.
The biggest cryptocurrency has bounced off the $6,000 mark four times since February, and a break below that price could signal further capitulation.
The GTI VERA Convergence Divergence indicator, which detects trend reversals and exhaustion, just ended its longest buy streak since July, suggesting more losses and pain for Bitcoin investors.
Bitcoin has already lost more than half its value this year, amid a continued regulatory crackdown and the growing sense that a broader adoption of digital assets will take longer than some had anticipated.
Such gloomy views are becoming more prevalent, as institutional and individual investors’ interest in the coin slackens.
The currency declined 1 percent to $6,241 as of 11:24 a.m. New York time Tuesday. It’s dropped more than 11 percent since the start of the month.
© Copyright 2021 Bloomberg News. All rights reserved.