Bitcoin Resumes Decline after Consolidation Period

  • Bitcoin (BTC)’s sell-off sped up on the break below $8,700.
  • The next support is created by SMA50 daily.

Bitcoin crashed below $8,700 and tested $8,550 during early Asian hours on Thursday. The coin moved outside the recent range and extended the downside into the end of the week. BTC/USD has lost 2% since the beginning of the day and 1% in recent 24 hours.

Bitcoin’s technical picture

On the intraday chart, BTC/USD is moving along SMA50 (Simple Moving Average), which is currently registered at $8,544. Once it is broken, the sell-off may be extended towards psychological $8,500, followed by $8,000. The next strong support is created by a confluence of SMA100 and the lower line of the weekly Bollinger Band at $7,600.

On the upside, we will need to see a sustainable move above $8,700  to mitigate the initial bearish pressure. Meanwhile, the pivotal resistance comes at $9,000 followed by the middle line of the daily Bollinger Band at $9,110. Once it is out of the way, the upside is likely to gain traction with the next focus on SMA200 daily at $9,250.

BTC/USD, the daily chart