Bitcoin Price Looks to Defend $6K as Sell-Off Slows

Bitcoin could defend the immediate support of $6,000 in the short-term as the recent downtrend is looking overstretched, according to technical studies.

The world's largest cryptocurrency by market capitalization fell for the third straight day on Wednesday to hit a three-week low of $6,121 on Bitfinex and was last seen trading at $6,320 - down 26 percent from the July 24 high of $8,507.

Notably, almost half of the 26 percent drop witnessed in the last two weeks has happened in the last 48 hours, which indicates the investors have been left unimpressed by the US Securities and Exchange Commission's decision to postpone any action regarding a bitcoin ETF proposal from VanEck SolidX Bitcoin Trust.

The technical charts are also indicating the bitcoin market is nearing oversold conditions.

The above chart shows, BTC convincingly closed below the ascending trendline yesterday, boosting the odds of a further sell-off.

The cryptocurrency has also found acceptance below $6,357, which only adds to the overall bearish tone of the market.

The RSI on the 4-hour chart fell back below 30.00 and hit the lowest level since June 22 earlier today, meaning the cryptocurrency is most oversold in seven-weeks.

View The bearish momentum in BTC could wane in the next 24 hours, allowing the cryptocurrency to defend the immediate support of $6,000.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

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