Bitcoin experiences a drop this week, and this has got the technical market analysts worried. It is not uncommon for the cryptocurrency market to go through some ups and downs. However, Bitcoin was expected to cross a crucial threshold of $12,000 which it failed.
Frank Cappelleri, the executive director of institutional equities at Nomura Instinet commented on the incident:
“f bitcoin is to retest its highs soon; it must first top $11,500 and $14,300,[…]Longer term, bitcoin is now back below a key uptrend line,[…]The last time it tested this support line, demand flooded the cryptocurrency. If that doesn’t happen again soon, the February lows would in the cross-hairs.”
It should be noted, that the past week we have seen a multitude of regulatory crackdowns on crypto-exchanges coupled with negative headlines. This has affected the entire cryptocurrency market as it fell by more than 20%.
One of the major regulations to affect the crypto market was when SEC(Security and Exchange Commission) passed a statement regarding digital currency exchanges and businesses dedicated to handling digital assets. On top of that, Binanca, a Hong-Kong based crypto exchange announced that some of their accounts had been subjected to phishing. Furthermore, Mt. Gox exchange collapsed as a trustee sold off over $400 million in bitcoin and bitcoin cash. That’s a lot to take in, especially in a span of one week.
As pointed out by J.C Parets, the president of All Star Charts, bitcoin is currently “stuck right now in a range between $7,400 and $11,900,” and that he wouldn’t be buying any dips as off now. “I want to be buying this on the way up,[…]In other words, for now, if we’re not above $11,900, this is a ‘no touch.”
According to CoinDesk, bitcoin reached a high of $11,660 this week. It hasn’t been able to cross the $11,900 mark since January, and even that was way lower than its all-time high of $19,000 during December last year.