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Bitcoin plummets to November lows near $6500, down more than $800 on the week

  • Cancellation of software upgrade triggers heavy sell-off.
  • Bitcoin-cash rises more than 30% as demand shifts.

The BTC/USD pair continues to show wild fluctuations since the start of the week as it loses around $1300 in two days after refreshing its all-time high near $8000 on Wednesday. At the moment, the pair is trading at $6500, losing 8.5% on the day.

On Thursday, Mike Belshe, the CEO and co-founder of bitcoin wallet software provider BitGo, announced that the Segwit2x software upgrade, which was going to be the next hard for bitcoin, was called off amid insufficient consensus for a clean block size. Despite the sharp fall seen on bitcoin, bitcoin-cash recorded substantial gains in the last two days, suggesting that investors are still looking for cryptocurrencies, just not bitcoin at the moment.

"You can see people playing back and forth between bitcoin and bitcoin cash trading depending on where they think near-term catalysts may be. It's been a battle of investors versus traders that were stockpiling bitcoin to get their 'bitcoin2x dividend'," Chris Burniske, author of "Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond," told CNBC.

Technical levels to consider

With today's fall, the pair broke below the 20-DMA for the first time since late October. On the downside, the initial support could be seen at $6000 (psychological level) ahead of $5450 (50-DMA) and $5000 (psychological level). On the upside, resistances align at $6600 (20-DMA), $7000 (psychological level) and $7500 (Nov. 9 high).

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