Digital currencies suffered badly on Wednesday, with most coins lost 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 o 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.
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