BTCUSD tried to stage a recovery over the weekend, but failed to confirm a break above the 100-DMA around $8,800 and resumed the bearish move on Tuesday. Today, the price has lost around 6% already, and the sell-off could intensify, should the coin lose the key $8,000 mark.
There are no any fundamental drivers behind the current moves in the cryptocurrency market where speculative and technical factors continue to prevail. Traders don’t dare to buy after a failed attempt to overcome the $10,000 figure and it looks like bitcoin needs some fresh bullish catalyst to break this psychological level.
From the technical point of view, stochastic is signaling oversold conditions, so there is a chance for a recovery from the current levels. On the other hand, the moving averages point to bearish risks in the short term.
To prevent further losses, the digital currency needs to bounce from one-month lows just above $8,000 and overcome the local resistance zone $8,400-8,500. Otherwise, the bearish move could accelerate, with the initial target at $7,850.
By Helen Rush
Senior Analyst at Capital Markets