On the heels of a 3% decline in the Nasdaq Composite, Bitcoin hit a new low for the month, reaching levels not seen since mid-March. As of 3:10 PM ET, Bitcoin is trading down by approximately $2,000 or around 4.8% at $38,500, according to Coinbase.

Today we got a confirmation of our ‘three-river drowning cat’ pattern with Bitcoin trading lower by over 2% or $800 as of 5:15 PM, ET. Today’s confirming candle is textbook with a lower low and lower high and appears as though we may get our first close below the 600-day SMA (simple moving average) in almost precisely two years.

Over the last four days, Bitcoin has had consecutive higher highs but is lacking any signs of a bullish reversal.

Today Bitcoin continued to gain ground after hitting a low of $38,500 before making a dramatic recovery. Currently, as of 3:00 PM ET Bitcoin is trading at around $41,440. That equates to a gain of 1.65% or $700 for the flagship cryptocurrency on the day and a $2,000 gain so far for the week.

There is a technical indicator that has acted as effective support at least seven times in the past three months. It is this level that, if broken, could lead to the level we spoke about in our last article as the target for the mid-halving point, $30,000.