Bitcoin attempted to hold bounce off the 20-day EMA on May 09 but could not find buying support at higher levels. On May 10, it broke below both the 20-day EMA and the small trendline support. Our stop loss at $8,900 was hit today as the cryptocurrency plunged to a low of $8539.62.
On the downside, the 50-day SMA at $8423 is a strong support, below which the fall can stretch to $7,900. If this level also breaks, the BTC/USD pair can sink to $7,000 levels once again.
If the 50-day SMA holds, the digital currency will attempt to move up, but it might face resistance at the 20-day EMA.
The flattening of the moving averages points to the formation of a range. The supports and resistances of the probable range have still not established. Hence, we are not recommending any trade today.