BTC/USD briefly fell below 7500 levels on Wednesday as it broke below 10-DMA support (Bitstamp).

The pair is over 10 percent down since it hit near 8300 levels and is currently trading at 7537 levels.

According to Reuters, the downtrend was triggered partly from disappointment resulting from the U.S. SEC, which reaffirmed an earlier decision to reject the bitcoin ETF application from Cameron and Tyler Winklevoss.

The pair seems to have found support at 90-EMA. A break below 7464 (90-EMA) would further drag it to 7292 (55-EMA)/7182 (Cloud top)/7135 (50% retracement of 5774.72 and 8496.96)/7051 (4h 200-SMA).

On the topside, resistance is seen at 7687 (1h 20-SMA) and a decisive break above would target 7864 (2h 20-SMA)/7979 (5-DMA). Further strength would see it testing 8030(10-DMA)/8107 (4h 50-SMA)/8309 (trend line joining 11688 and 8496.96).

Momentum Studies: Technical indicators are bearish on the daily chart – stochs biased sharply lower, MACD on the verge of a bearish crossover and RSI at 52 with lower bias. Bias appears bearish on intraday charts as well.

Recommendation: Good to go short on break below 90-EMA. SL: 7750. TP: 7300/7200.