The pace of bitcoin's ongoing sell-off is setting new records with every passing day, the latest being its test of a key long-term moving average for the first time in three years.

Indeed, the world's most valuable cryptocurrency network fell below its 200-week exponential moving average (EMA) of $4,180 yesterday, marking the first break of the crucial support since August 2015. Back then, BTC was changing hands around $220, according to Bitstamp data.

The breach of long-term support, however, was short-lived as record low readings on the relative strength index (RSI) likely put a bid under BTC, helping it regain some poise.

At press time, BTC is changing hands at $4,440, having clocked a 14-month low of $4,048 yesterday.

Notably, the recovery has established the 200-week EMA as the level to watch out for in the near-term. The already bearish technical setup would be bolstered further if the cryptocurrency finds acceptance below the long-term EMA support, leading to a deeper drop below the psychological support of $3,000.

Weekly chart

CoinDesk - Unknown

As can be seen above, the 78.6 percent Fibonacci retracement of the rally from 2015 lows to 2017 highs lines up at $4,328 - just above the 200-week EMA of $4,180. So, it seems safe to say that the area between $4,100 and $4,350 is packed with key support lines.

The chart also shows that a break below the 200-week EMA could prove costly as the next major support is seen directly at $3,130 – the widely followed 200-week simple moving average.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

image via Shutterstock; Charts by Trading View

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