Bitcoin market update: More pain to come as BTC/USD stays under $3,400

A single Bitcoin is changing hands at $3,392 at the time of writing. The coin has lost nearly 1.5% of its value since this time on Thursday and 8.7% since the beginning of the year. Having had a tough start, the first digital coin is balancing on the verge of a dipper sell-coffin February. 

“Bitcoin appears to have stabilized again following a couple of volatile months that saw it once again come under pressure. The last few weeks have seen it trading in much tighter ranges, but at the same time, it has continued to drift lower which only reaffirms my view that darker days still lie ahead,” Craig Erlam, senior market analyst at Oanda commented.

The expert believes that we need to see a break above $4,500 to mitigate near-term downside pressure and bring the next target of $6,000 into focus. However, at this time momentum remains bearish.

Bitcoin’s technical picture

Looking technically, BTC/USD will have a hard time trying to regain ground. A substantial barrier located right above the current price includes psychological $3,400, SMA50 and SMA100 (1-hour). We need to see a move above $3,430 to avoid further sell-off. The next resistance comes at $3,472 (Thursday’s high) and $3,500 with SMA200 (1-hour) on approach.

On the downside, BTC is vulnerable to further declines with the next target at $3,341 (January 29 low) and $3,200. A move below this area will bring 2018 low $3,127 into focus.