Bitcoin (BTC/USD) daily chart (Coinbase)
The optimism is starting to wane for Bitcoin as it looks poised to solidify a drop back below the $70,000 mark. Price is now trading back to $66,000 levels and that marks a 6% decline for the day thus far. Looking at the near-term chart, the technicals signs are growing more negative as well:
Bitcoin (BTC/USD) hourly chart (Coinbase)
The run lower since yesterday took out both the 100-hour (red line) and 200-hour (blue line) moving averages, reaffirming a more bearish near-term bias currently.
Considering the breathtaking pace from which the cryptocurrency has rallied from around $44,000 to $73,000 in just one month, the correction lower here might be quite a painful one to deal with.
Then again, Bitcoin did also suffer a 6.6% drop in Tuesday trading last week. It recovered strongly after but the difference here is that the near-term technical levels are being broken and the candle pattern being formed does look rather toppish.
Has the hype train run its course?