Bitcoin's Price Declines Over Q2 for First Time on Record

As the three-month period came to a close this week, the final figures indicate bitcoin fell 8 percent according to CoinDesk's Bitcoin Price Index, snapping a 7-year win streak for the market's leading cryptocurrency.

BTC's 1,964 percent rally in the second quarter of 2011 is its best quarterly performance ever.

Clearly, history was on bitcoin's side and hence, beleaguered bulls were expecting BTC to regain poise in the second quarter following a 50 percent decline in the first quarter.

April: BTC squashes 'Death Cross' FUD. The bearish sentiment hit the extreme in early April as pundits took note of the much-feared "Death cross" and began calling a move lower to $2,800.

Emboldened BTC bulls were anticipating a big break above $10,000, which never happened.

Further, things took a turn for worst in mid-May as BTC prices fell below the key 50-day MA and 100-day MA, signaling the path of least resistance is to the downside.

Further, BTC found acceptance below the 50-week moving average for the first in over two-and-a-half years and suffered a pennant breakdown.

The above chart shows BTC has bounced off the key 75-week exponential moving average support.

History shows, the moving average is a make or break level for BTC. For instance, BTC's last bear market ended with an upside break of the 75-week EMA at the end of 2015 and what followed was a two-year long bull market.

That said, the probability of BTC crossing the trendline hurdle in Q3 is high, given the cryptocurrency has rebounded from the key 75-week MA. Note that bears will likely make a strong comeback should BTC fall back below 75-week MA. Bitcoin and US dollar image via Shutterstock.