Bitcoin rewinds to $7,653 as Cryptocurrency Market Dropped $27 Billion Overnight
A day ago the bitcoin price dropped to $7,800 overnight, and the BTC price is currently hovering in the $7653 region.
Cryptocurrency researcher Willy Woo suggested it is possible bitcoin will drop to the lower end of $7,000. If the bitcoin price falls below the $8,200 resistance level, a reentry into the $7,000 region is inevitable.
If bitcoin drops below $7,700, it might stabilize in the $7,300 region short term. The RSI of BTC has already shown oversold conditions, which would normally result in a strong rebound for bitcoin. If the BTC price fails to rebound to $8,000 and remains in the lower region of $7,000, cryptocurrency tokens might continue to drop against both bitcoin and US dollar.
Due to the current strong downtrend, the bitcoin price could even continue to the lower end of $7,000. The next support level is $7,000, although that support level could fail too. Then it will result in an accumulation opportunity for bitcoin supporters.
CNN reported that the recent dip of bitcoin and the cryptocurrency markets can be attributed to 3 factors.
1.The MT. GOX trustee sell off early May. Markets react to buy and sell indicators, and if there is a large sell off of bitcoin as with MT. GOX, the cryptocurrency markets will react negatively.
2.The controversy surrounding Upbit and Bithumb. South Korea is home to one of the world’s biggest cryptocurrency trade exchanges, Bithumb. South Korea is the world’s third-largest marketplace in bitcoin trading after Japan and the US, with 2 million digital-currency investors by one estimate.
More than 3 out of 10 salaried workers in South Korea have invested in cryptocurrencies, according to a new study conducted by pursuit portal Saramin. The controversy could have left South Korean investors in doubt if cryptocurrency is a safe haven.
3.Bitfinex taxation policy: By targeting a small portion of their user base to forfeit tax IDs and personal identification, Bitfinex led large-scale investors to become fearful of a potential government intervention and they withdrew big sums of funds from the exchange.
Luckily history has shown, what markets that goes down, will go up again. Hopefully cryptocurrency investors and the markets will regain trust and Bitcoin will recover sooner than later! What are your thoughts on this?
Cheers for now!!!