Bitcoin Today: price goes lower, why?
Price
The price could not hold above the Bullish Trend Line and broke below it on 26.05.2018. May 27 was held in a lateral manner around 7300.0 level. Monday started with another decline to the 7200.0 level, the decline was accompanied with the huge volumes, and it worth noticing that such significant volume did not move the price below the 7000.0 support, hence a big part of the volume was a buying volume. The pattern stays Bearish, bounded below the Bearish Trend Line. To change the overview, we will need to see a rise above the Bearish Trend Line and 7600.0 level. From the below, 7000.0 level s the closest support, in case of a breakthrough, the price will go in for the 6000.0 low.
Today forecast
Trading in the 7000.0 – 7600.0 zone.
Possible reasons of recent falls
Since May 21 BTCUSD price is in a robust Bearish pattern. The prevailing opinion in bitcoin community that it may have to do with the Chinese ICO markets being highly active despite the ban and resulting in strict regulatory actions. The Chinese government has officially announced that it deems shady ICOs as great risks and that the government watchdog is keeping a close eye on excessive speculation, fraudulent profit schemes, and fake propaganda.
Another popular opinion – Mt Gox sell-offs which made bitcoin lose 9000 USD footing. Bitcoin markets experienced high losses when the news broke out regarding initial Mt Gox sell-off. The executives who are in charge of refunding users of Mt Gox before its hack apparently sold around 8000 BTC which amounts to be approximately, 70 million USD.
Upbit investigation news caused a pretty big shock for the markets. Upbit which is known as one of the most influential crypto exchange located in South Korea was suddenly investigated by Financial Supervisory Commission. FUD spread fast, and millions of traders assumed that Upbit which is a subsidiary of communications Influencer Giant ‘Kakao’ might’ve been compromised. After some time, an official announcement came out from Upbit confirming that there haven’t been any raids of any sort and that the motive of FSC, as well as the Korean police force, was an investigation and that the exchange platform remains functional.
Last popular negative news of recent times - Bitfinex newly implemented taxation policy. On 17th May, Bitfinex requested some of their users to forfeit their Tax IDs and their social security number which the government of the British Virgin Island (Bitfinex headquarter) may exchange with tax authorities of the country to which the user belongs. This idea was immediately boo-ed by crypto enthusiasts and influential trading groups such as Whalepool which publicly announced that they’ll stop using Bitfinex unless the taxation policy remains.
The price could not hold above the Bullish Trend Line and broke below it on 26.05.2018. May 27 was held in a lateral manner around 7300.0 level. Monday started with another decline to the 7200.0 level, the decline was accompanied with the huge volumes, and it worth noticing that such significant volume did not move the price below the 7000.0 support, hence a big part of the volume was a buying volume. The pattern stays Bearish, bounded below the Bearish Trend Line. To change the overview, we will need to see a rise above the Bearish Trend Line and 7600.0 level. From the below, 7000.0 level s the closest support, in case of a breakthrough, the price will go in for the 6000.0 low.
Today forecast
Trading in the 7000.0 – 7600.0 zone.
Possible reasons of recent falls
Since May 21 BTCUSD price is in a robust Bearish pattern. The prevailing opinion in bitcoin community that it may have to do with the Chinese ICO markets being highly active despite the ban and resulting in strict regulatory actions. The Chinese government has officially announced that it deems shady ICOs as great risks and that the government watchdog is keeping a close eye on excessive speculation, fraudulent profit schemes, and fake propaganda.
Another popular opinion – Mt Gox sell-offs which made bitcoin lose 9000 USD footing. Bitcoin markets experienced high losses when the news broke out regarding initial Mt Gox sell-off. The executives who are in charge of refunding users of Mt Gox before its hack apparently sold around 8000 BTC which amounts to be approximately, 70 million USD.
Upbit investigation news caused a pretty big shock for the markets. Upbit which is known as one of the most influential crypto exchange located in South Korea was suddenly investigated by Financial Supervisory Commission. FUD spread fast, and millions of traders assumed that Upbit which is a subsidiary of communications Influencer Giant ‘Kakao’ might’ve been compromised. After some time, an official announcement came out from Upbit confirming that there haven’t been any raids of any sort and that the motive of FSC, as well as the Korean police force, was an investigation and that the exchange platform remains functional.
Last popular negative news of recent times - Bitfinex newly implemented taxation policy. On 17th May, Bitfinex requested some of their users to forfeit their Tax IDs and their social security number which the government of the British Virgin Island (Bitfinex headquarter) may exchange with tax authorities of the country to which the user belongs. This idea was immediately boo-ed by crypto enthusiasts and influential trading groups such as Whalepool which publicly announced that they’ll stop using Bitfinex unless the taxation policy remains.
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