Bitcoin drifts lower, but takes back seat to global equity weakness

Bitcoin traded lower Tuesday on light volumes as market watchers kept their eyes on a global stock market selloff.

In early Tuesday trading, a single Bitcoin

BTCUSD, -0.42%

 on the Kraken crypto exchange was changing hands at $6,415.43, down 0.6% since 5 p.m. Eastern Time Monday.

However, for broad market watchers, cryptocurrencies have taken a back seat as an equity selloff—fueled by concerns in China and Italy — led to a steeply lower open for Wall Street, with the Dow Jones Industrial Average

DJIA, -1.62%

 dropping more than 400 points before trimming its decline.

200-day moving average still the crucial level for Bitcoin

For chartists, the 200-day moving average remains the inflection point. In a research note to clients, Tom Lee, managing partner at Fundstrat Global Advisors said historically a move above this level has provided positive returns in the following six months 80% of the time, compared with 50% when it trades below the closely watched level. A moving average is a closely observed momentum indicator.

The 200-day moving average for Bitcoin currently stands at $7,200.

Read: What’s more volatile than Bitcoin? You may be surprised

Altcoins set for back-to-back losing session

Coins other than Bitcoin, often known collectively as altcoins, traded lower. Ether

ETHUSD, -1.35%

was trading below $200 at $198.59, down 1.5% on the day, Bitcoin Cash

BCHUSD, -2.21%

was down 2.1% at $435.10, Litecoin

LTCUSD, -0.25%

was off 0.6% at $51.65 and XRP,

XRPUSD, -2.80%

the cryptocurrency of the Ripple protocol, was the worst performing major altcoin, trading 3% lower at 44 cents.

Bitcoin futures are tracking spot prices lower Tuesday. The Cboe Global Markets November contract

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