Bitcoin (BTC) drops like a stone amid total cryptocurrency sell-off

BTC/USD loses 5% in a matter of hours.
The coin needs to get back above ultimate resistance $4,000.

Tanya Abrosimova Independent Analyst

Bitcoin dropped like a stone ahead of European opening. The first digital coin is trading below $3,800 handle, losing nearly 5% in a matter of hours. Altcoins like Ethereum, Bitcoin Cash, and Dash are leading the decline, though no particular reasons are readily available to justify the sell-off.

Earlier we reported that Bitcoin is on the verge of a breakthrough. It seems that the forecast hit the point.

BTC/USD, technical picture

Looking technically, BTC/USD collapsed below all SMAs on the 1-hour chart, which might be regarded as a short-term bearish signal. The local support comes at $3,756 (the intraday low and a consolidation area of January 4) and followed by $3,500.

It is worth noting, that both RSI and Momentum indicators have entered a red zone confirming the downside momentum. i-hour RSI now stays on the oversold territory with no signs of reversal.

The price needs to recover above $3,850 (SMA200, 1-hour) to improve the short-term technical setup and open up the way towards $3,900 guarded by SMA100 and ultimate $4,000.

BTC/USD, 1-hour

Author

Tanya Abrosimova

Independent Analyst

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