Bitcoin price has dropped on Friday to its lowest price since May. A widely tracked technical indicator suggests this is the strongest bearish shift within the last 8 months.

Bitcoin dropped to $6936.71 on coinmarketcap and that was the lowest level since mid-May. The number one crypto by market cap has made 4.5% pullback in 24 hours and is trading at $7,207.27, at time of writing.

Nonetheless, the downtrend looks sustainable because the weekly relative strength index (RSI) has declined to 43.00 and that is the lowest reading since mid-march. The RSI is an indicator that is used to confirm market trends, as well as overbought and oversold conditions. A reading below 50 is an indication of bearish season and above 50 indicates bullish trend. So we can actually conclude that the market is bearish, with the current 43 reading.

The RSI is holding well below the 50 reading and is pointing south, confirming the bearish market. Deeper bars are also being printed below the zero mark of the MACD histogram, indicating a strong bearish momentum.

The coin is trapped in a falling channel and a further drop to the channel support at $6,800 is imminent. However, this may be preceded by a minor bounce to $7,700 – $7,800, according to the intraday charts. The only way to reverse this bearish trend is when prices invalidate the lower highs setup with a move above $8,231.

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