Bitcoin tumbles to its lowest since February as downside momentum intensifies

The signs were already building yesterday as sellers tested the waters below the 200-day moving average (blue line). This eventually led to a break of the May low today and momentum continues to build. Well, it certainly doesn’t look good on the charts.

In terms of catalysts, people point to the Mt. Gox flows as one of the reasons. But this is crypto, so I think anything is possible really. Meanwhile, the optimists continue to say that this is all just empty talk and does not change the long-term outlook for Bitcoin.

Whatever you want, the chart doesn’t lie at least. It shows that things have definitely taken a more bearish turn for Bitcoin.

Now, the bears see the $50,000 level as another potential level. The 61.8 Fibonacci retracement level of this year’s rally is around $51,998, so this level could also provide some minor support.

As the mood shifts to a more downbeat music, we also see that the ether is about to collapse as well: