Bitcoin Hits One-Month Low As $10K Sell-Off Resumes

Bitcoin's drop to one-month lows below $8,000 has strengthened the bear grip on the markets, the technical charts indicate.

The cryptocurrency fell to $7,925 on Bitfinex earlier today - the lowest level since April 18 and has retraced 50 percent of the rally from the April 1 low of $6,425 to May 5 high of $9,990.

As of writing, BTC is changing hands at $8,120, representing a 2 percent drop in the last 24 hours.

The recovery from the low of $7,925 could be associated with the oversold conditions shown by the relative strength index in the hourly chart.

BTC closed well below the 50-day moving average yesterday, signaling a continuation of the sell-off from the recent high of $9,990.

Further, BTC has also found acceptance below $8,207, a level which acted as a strong support since May 12.

Last but not the least, BTC's turn lower from $8,884 and drop below $8,100 yesterday have established a lower highs and lows pattern.

It is quite clear that the drop to one-month lows in the last 24 hours has the put bears in the driver's seat.

BTC looks set to test the immediate support lined up at $7,787.

A daily close below that level would be the final confirmation of bearish trend reversal and will likely be followed by a sell-off $7,000.