A SERIES OF NEGATIVE NEWS PUSHES BITCOIN LOWER
The price of bitcoin has declined following a series of bad news for the crypto sector. This follows weeks of price rises which were spurred on by BlackRock – the world’s largest asset manager – eying the crypto space. Bitcoin reached a multi-month high of $8405 on July 27, 2018. Today, Bitcoin is trading at $6870.
Last week, renowned blockchain expert, Mike Novogratz, launched the IPO of his company, Galaxy Digital at the Toronto exchange. The shares tumbled by more than 30% during the first week of trading, an indication of scepticism of the cryptocurrency industry.
On Friday, the Wall Street Journal had a big feature on cryptocurrencies and ICOs. In the feature, the paper found that large groups manipulated the price of cryptocurrencies and ICOs largely through pump and dump schemes which leave vulnerable traders holding worthless tokens. Already, the schemes have cost traders millions of dollars. Such actions within the crypto space are likely to lead to regulatory guidelines somewhere down the line.
The BTC/USD pair is now trading at $6870. This price is below the 50 and 100-day Exponential Moving Average (EMA). The RSI has moved below the oversold level. Therefore, there is a likelihood that the pair will remain at the oversold level and possibly move lower to test the important support of $6500 as shown below.