By Bitcoin is trading below the 4H 100MA for the first time since Jan. 3.
The bulls failed to defend support near $8,460, allowing sellers to push the cryptocurrency down to lows below $8,290.
On the way lower, the cryptocurrency also violated the 4H 100MA, which may now act as resistance, As of writing, bitcoin is priced near $8,330 on major exchanges and the 4H MA is stationed at $8,432.
A big move above that level would offer respite to the bulls. Technical studies, however, are calling a deeper drop to $8,000.
4H chart
The convincing move below $8,460 – the level which acted as strong support quite a few times over the last three days – has made bitcoin vulnerable to deeper losses.
The Bollinger band breakdown seen on the above chart also indicates the correction from the high near $9,200 touched on Sunday is about to gather pace.
The first major support the sellers would be looking to attack is $8,200, under which the psychological level of $8,000 would warrant attention.
On the higher side, a clear break above $8,460 is needed to weaken bearish pressures.