Bitcoin Drifts Down as Price Breaks Below Key $7.8K Support

At press time, BTC is changing hands at $7,536 on Bitfinex, down 6.9 percent on the day, a figure that also finds the price breaking a. key support level at $7,800.

The world's largest cryptocurrency by market capitalization has been largely confined to a narrow price range of $7,673-$7,800, since it broke $8,000 yesterday.

For those eyeing the charts, the extenuated bearish MACD demonstrates high price volatility and negative price action with the signal line continuing to plow under.

Prices quickly fell away from between $7,987 and $7,802 with a massive spike in sell volume.

A cascading downside break from the trading range - bearish pattern.

RSI is oversold at 22.9l; it could either turn bearish by dropping lower or it could create a bullish divergence whereby prices continue to drop from the previous hours but the RSI creates a higher high.

Extenuated bearish MACD - the extension created from the sell-off risks a possible drop further as the bearish histogram continues to play out.

This would create a short-term rebound whereby price action would need to be reassessed.

A drop below 22.745 RSI levels would likely expose bitcoin to a short-term rebound whereby price action would need to be re-analyzed.

An extended MACD creates a new bearish cycle on the histogram - extending the sell-off period by a couple of hours.