Bitcoin Back on the Defensive After Price Hits Two-Week Low

Bitcoin's price dropped to two-week lows earlier today and could extend the decline to key support near $6,100, technical charts indicate.

The leading cryptocurrency was teasing a bullish move 24-hours ago, having carved out a lower high of $6,270 along the support of the trendline connecting the Oct. 11 low and Oct. 31 low.

The defense of the key trendline support was also backed by a bullish divergence of the MACD histogram.

BTC has breached the ascending trendline support on the 4-hour chart, adding credence to the lower highs and lower lows pattern created from the Nov. 7 high of $6,540.

The bearish setup would be invalidated if prices cut through the descending trendline, representing lower highs pattern.

Over on the 3-day chart, BTC looks set to test support at the trendline connecting the June 24 and Aug. 14 lows, currently at $6,113, having charted a "Gravestone doj" earlier this month.

View The drop to two-week lows has likely opened the doors for a test of the trendline support at $6,113.

A 3-day close below that level would strengthen the bear grip on BTC, allowing for a drop to June lows below $5,800.

On the higher side, the weekly high of $6,540 is the price to beat for the bulls.

Bitcoin image via CoinDesk archives; charts by Trading View.