Bitcoin Hits Three-Week Low, Eyes Break Below $8,600

Bitcoin 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 5-day moving average 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 of $8,849 and down 2.42 percent from the previous day's close of $9,018.

The above chart shows BTC closed yesterday below $9,149, pushing indicators into bearish territory.

The relative strength index has dipped below 50.00, confirming a short-term bullish-to-bearish trend change and opening the doors for a further drop in prices.

The 5-day MA and the 10-day MA are both trending south, having witnessed a bearish crossover earlier this week.

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.

View Bitcoin will likely break below $8,628, signaling the end of the rally from the April 1 low of $6,425 and risks falling to $8,282 over the weekend.

The cryptocurrency could revisit $9,000 as indicated by the oversold conditions in the 4-hour and 1-hour chart.

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.