BTC/USD plunged to 7853 levels after the U.S. Securities and Exchange Commission (SEC) rejected the second attempt by the Winklevoss twins to launch a cryptocurrency exchange-traded fund (ETF).

The downtrend has found support near 7848 (7-DMA) and is currently trading at 7909 levels at the time of writing (Bitstamp).

The pair faces immediate resistance at the psychological level of 8000 and a decisive break above would test 8065 (2h 50-SMA)/8162 (1h 50-SMA). Further strength would target 8354 (61.8% retracement of 9948.98 and 5774.72)/8429 (trend line joining 11688 and 8496.96)/8560 (200-DMA).

On the downside, a break below 7848 (7-DMA) would see the pair testing 7711 (10-DMA)/7610 (100-DMA). Further weakness would drag it to 7500/7396 (Cloud top).

Momentum Studies: On the daily chart, RSI has rolled over from overbought levels but holding at 64 and stochs are on the verge of a rollover from the overbought zone. Overall bias, however, appears bullish as long as the pair holds 7-DMA support.

Watch out for a break below 7-DMA for minor downside in the pair.