Digital currencies suffered badly on Wednesday, with most coins losing over 10%. Bitcoin broke below two important support levels at $8,000 and $7,800, and refreshed multi-week lows around $7,400. The coin is attempting to stage a recovery Thursday, but the impetus looks limited so far.
The technical picture has worsened significantly after a break below the mentioned levels, and this break was a confirmation of the ongoing bearish trend that started on May 5, when the price was rejected from the 200-DMA marginally below the $10,000 threshold.
By the way, the trading volumes have increased lately, which could mean we’ll see further decline at some point before the buyers jump in. The immediate support is the $7,400 area where the lowest level since April 12 lies. Should the price erode this level, BTCUSD may challenge the $7,000 mark where some bulls could reemerge. In the short term, the cryptocurrency will likely make another attempt to recover above the important $7,800 figure.