Bitcoin technicals on the way down

Technical indicators show Bitcoin could be entering a new downward trend. The biggest digital token entered a new negative divergence pattern on Thursday |

Bitcoin bulls might be in for some bad news: technical indicators show the cryptocurrency could be entering a new downward trend.

The world’s biggest digital token entered a new negative divergence pattern on Thursday, according to the Directional Movement Index, a technical momentum indicator.

The index’s ADX line, which determines the trend’s strength, appears to have bottomed and started to curl upwards. This could indicate the negative trend is gathering momentum.

All eyes remain on Bitcoin’s $6,000 (Dh22,000) support level, which the digital token has not tested since mid-August. The cryptocurrency has been trading sideways in a slightly positive divergence for the past three weeks, with the price hovering between $6,300 and $6,600.

Though the digital token has trended sharply lower all year due to closer regulatory scrutiny and limited adoption of cryptocurrencies in general, some investors say Bitcoin’s drop yesterday could be attributed partly to the broader market sell-off. US stocks on Wednesday had their worst decline since February.