Search ForexCrunch

The selling pressure surrounding the major cryptocurrencies intensified on the last day of the week with Bitcoin (BTC/USD) erasing more than $700 and slumping to its lowest level since mid-January at $8,160. As of writing, the pair was trading at $8,220, erasing nearly 8% on a daily basis.

Technical outlook

With the sharp drop witnessed on Sunday, the RSI indicator on the daily chart fell below the 40 mark to suggest that the bearish pressure continues to gather strength. The fact that the RSI is still above the 30 level shows that there is more room on the downside before the pair becomes technically oversold and stages a rebound.

Furthermore, the prices broke below both the 200-day SMA and the 100-day SMA for the first time in two months to confirm the bearish outlook.

The initial support for the pair could be seen at $8,200 (Fibonacci 61.8% retracement of January-mid-February rally) ahead of $8,000 (psychological level), On the upside, resistances are located at $8,400 (100-day SMA) and $8,700 (200-day SMA/Fibonacci 50% retracement of January-mid-February rally).

BTC/USD daily chart