Bitcoin (BTC) hit a three-week low of $8,713 on Bitfinex earlier today and looks set to extend losses further, price chart analysis indicates.
The cryptocurrency failed to cut through the descending (bearish) 5-day moving average (MA) located at $9,382 yesterday, despite the bullish falling channel breakout on May 9, and fell below the $9,000 mark as anticipated.
As of writing, BTC is changing hands around $8,800 - below the 100-day moving average (MA) of $8,849 and down 2.42 percent from the previous day's close (as per UTC) of $9,018.
The 10 percent decline from the recent high of $9,990 has weakened the bulls and has boosted the odds of a deeper drop to the 50-day moving average lined up at $8,282.
The 50-hour MA, 100-hour MA, and 200-hour MA are trending south and positioned one below the other in favor of the bears. Yet, the RSI on the 60-minute chart also shows oversold conditions. So, a minor corrective rally cannot be ruled out.
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Bitcoin will likely break below $8,628 (38.2 percent Fibonacci retracement), signaling the end of the rally from the April 1 low of $6,425 and may fall to $8,282 (50-day MA) at the weekend.
BTC could revisit $9,000 as indicated by the oversold conditions 0n the 4- and 1-hour charts. That said, upticks will likely be short-lived as indicated by generally bearish setup.
Bearish invalidation scenario: A rebound from the mildly bullish 200-candle MA located at $8,628 in 4-hour chart and a close above 10-day MA of $9,390 would abort the bearish view.