BTCUSD is extending its losses and is currently trading not far above the 14-month low of 3490 hit on November 26. The price fell below the bearish cross between the 20- and 40-simple moving averages in the 4-hour chart. The stochastic oscillator is heading lower towards the oversold territory; however, the RSI indicator is turning slightly higher in the bearish zone.
Should the pair stretch south, the multi-month low of 3490 could provide immediate support before the pair slips lower. A significant step lower could endorse the bearish sentiment, sending the price probably towards 2790, which was a strong barrier back in September 2017.
If the bulls manage to take charge and jump above the moving averages and the 4005 resistance level, then the expectation is for another test of the 23.6% Fibonacci retracement level of the downleg from 6508 to 3490, around 4200.
In the bigger view, the bearish phase remains in play especially after BTCUSD dropped below the 6160 key level.
