Bitcoin price analysis: BTC/USD crashed below $7,860 as HitBTC exchange went offline
- BTC/USD down 7% on a daily basis amid waning momentum.
- Technical problems at one of the largest exchanges made investors nervous.
Bitcoin is changing hands at $7,531 after an epic crash on Tuesday. The coin lost nearly 7% of its value on a daily basis as a long period of consolidation above critical $8,000 andede in bearish breakthrough, which triggered massive sell-off on stop-orders and trading bots.
Considering the long period of trading in a narrow range amid faded away upside momentum, a strong movement looks natural. While it is hard to say for sure what might have caused the downside, the biggest factor for the decline might have been HitBTC exchange that had gone offline. The company's mamangement says that the exchange is experiencing a hardware issue and all clients' funds are safe.
Bitcoin's technical picture
From the technical point of view much harm is done. BTC/USD broke below psychological $8,000, dived under 50.0% Fibo retracement at $7,862; Now 100-DMA and previously broken sloping trendline around $7,550 are under threat. If it fails to recover soon, the sell-off may be extended with the next aim at $7,370, which is 38.2% Fibo retracement . On the upside, $8,000 remains the ultimated bulls' target at least if they still hope to extend the recovery.
Author
Tanya Abrosimova
Independent Analyst
