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Bitcoin Price Analysis: The situation looks worrisome as BTC heads towards SMA100 weekly

  • BTC/USD has lost over 4% since the beginning of Thursday.
  • The sell-off may continue if the price fails to recover above $7,500.

Bitcoin (BTC) resumed the decline and hit $7,350, the lowest level since January 6. At the time of writing, BTC/USD is changing hands at $7,419, though the downside momentum remains strong as the market is controlled by sellers. The first digital coin has lost over 7% since the beginning of Thursday and nearly 5% on a day-to-day basis. However, Bitcoin’s market share jumped to 65.9% as the altcoins experience even more severe sell-off.

BTC/USD: Technical picture

Bitcoin broke below a strong support area $7,700 which triggered a host of new selling orders and pushed the price to new lows. As FXStreet has previously reported, over 4 million BTC trades had been sitting around that barrier, which created a massive wave of positions liquidation. 

The RSI on the 1-hour chart still points downward, which implies that the sell-off is not over yet. The coin may go all the way down to $7,200. This support is reinforced by SMA100 weekly. If it is broken, $7,000 will come into focus.

On the upside, a sustainable move above $7,500 will help to mitigate the initial pressure; however, a stronger barrier is located on the approach to $7,700-$7,800 area. SMA50 1-hour located at $7,850 may serve as an additional hurdle for BTC bulls on their way to psychological $8,000.

BTC/USD 1-hour chart


FX Street

FX Street

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