• BTC/USD is moving with a short-term downside bias.
  • Critical support is created by SMA50 daily on approach to $7,350.

Bitcoin slipped below $8,000 and continued moving to the South on Friday as the cryptocurrency market reversed most of the gains. At the time of writing, BTC/USD is changing hands at $7,700, dangerously close to SMA50 weekly (currently at $7,690). The first cryptocurrency has lost over 2% of its value in recent 24 hours and 1.2% since the beginning of Friday. 

BTC/USD: technical picture

From the technical point of view, a sustainable move below the above-said SMA50 will trigger more selling and push the price towards $7,300-$7,350 area that served as an upper boundary of the recent consolidation range and limited Bitcoin's recovery at the end of December. This support area also includes SMA50 daily. It might slow down the bears and initiate another bullish wave towards $8,000. However, once it is broken, the downside pressure will intensify. 

Another strong support awaits us at $7,150. It is created by 61.8% Fibo retracement for the upside move from December 2018 low to July 2019 high. This area served as a backstop for BTC since the end of November, while several attempts to break it proved to be short-lived.

On the upside, the first barrier is created by SMA100 daily at $7,900, however, we will need to see a strong move above $8,000 for the upside to gain traction and bring the recent high of $8,464 back into focus. However, we will have to pass through the upper boundary of the descending wedge at $8,300 before we get there. Notably, if the price breaks free from the wedge, the upside momentum will increase rapidly and push BTC towards $9,000.

Considering the downward-looking RSI on a daily chart, the bearish scenario looks more likely at this stage.

BTC/USD daily chart

 

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