Bitcoin (BTC) has dropped out of the tight trading range seen recently, paralleling losses in the U.S. stock markets.The leading cryptocurrency, which was trapped in a triangle pattern (narrowing range) above $6,400 yesterday, had looked set for a breakout. However, the bullish technical setup failed and BTC found acceptance below the triangle support of $6,430 at 17:30 yesterday. The downward move was possibly linked to risk aversion in the U.S. equities, with the S&P 500 opening on a negative note Thursday and closing with a 1.4 percent loss.Bitcoin and the S&P have appeared to correlate on and off for almost a year, each taking turns as the leading indicator. Of late, the S&P 500 index has been leading the BTC market by 12 hours or more.At press time, BTC is changing hands at $6,380 on Coinbase, representing a 1.19 percent drop on a 24-hour basis. The triangle breakdown witnessed yesterday may have emboldened the bears. So far, however, the downside has been restricted around $6,350.
Hourly Chart
Bitcoin's Price Breaks Through Key Support As Stocks Go South
