Bitcoin Price Crash: Bears have been holding onto crypto markets over the last couple of weeks, with negative reports and increasing regulatory concerns. The selloff intensified in the previous two days when technical factors also started showing bearish trends for Bitcoin price and its future fundamentals. BTC price crashed at a double-digit rate to a 50-day low on Thursday, and the coin extended the decline into Friday trading.
Bitcoin price is down more than 40% since hitting $11,700 early in March. Bitcoin price traded around $6,700 in early trade before paring some losses. The market capitalization of largest coin fumbled to $114 billion.
The Death Cross Trend Impacts Sentiments
Technical factors on the price charts impacted Trader’s sentiments. Its 50-day moving average cut the 200-day moving average from the top, creating a long bearish trend for the price. Technical analysts predict a huge crash in bitcoin price after its 50-day MA collides with 200-day MA from above.
Analysts say, “when you couple Death Cross trend with the fact that bitcoin has been trending steadily lower since the launch of futures, I think that it is a major negative.”
Bulls, on the other hand, still of the opinion that cryptocurrency markets are on the verge of significant rebound – which would be similar to late 2017.
Brian Kelly said: “Bitcoin, just like the spot FX markets, follows technical’s closely. Therefore these support levels gain more importance. If these levels hold, then it will confirm the uptrend from August is still valid.”
Bears Also Get Support from Regulators
China, which has already banned all sorts of cryptocurrency platforms, is likely to extend its crackdown into the next year. China outlined its financial agenda for next year on Thursday; the country believes protecting their national currency from cryptocurrencies is their primary priority. U.K. Financial Conduct Authority also issued a warning to investors regarding unregistered brokerage dealers that are offering cryptocurrency derivative products to U.K. citizens.
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