The cryptocurrency par excellence seems to have bowed to the bearish pressure developed since June. The bulls can consider Bitcoin’s experience regarding great rallies and the corrections that finally led to double its prices.
The price of Bitcoin had been relatively stable for several weeks at the level of USD 8,000, and even a few days ago it tested its luck with an attack at USD 8,500. However, the most popular digital currency of the world seems to have bowed to the bearish pressure, which closed at USD 7,890 on the morning of October 18th.
The level that was being lost that morning is a strong support for Bitcoin, so if it fails to recover in the European session, falls could accelerate. Under these conditions, the most immediate support must be placed around 7,840 dollars, the lower limit of the Bollinger Bands, and a little lower, at 7,780 dollars, where it exceeds the moving average of the last 100 sessions, which already stopped some bearish attempts in the month of September.
Below, there is relevant support at USD 7,500, according to Spanish analyst Javier Molina. According to him, losing the USD 7,800 level would lead to the USD 7,500 level. The situation is complicated as the price action has been developed in a bearish channel since the month of June, with a series of dangerous decreasing highs that do not augur well, unless prices are aimed at breaking the USD 10,200 level.
The bad news is that the bearish trend is still intact and the investment sentiment does nothing but deteriorate. From the highs at USD 12,733 at the end of June, Bitcoin’s fall now exceeds 38%. However, during the year it has had a rise of 110%. The last bastion on which the bulls place their hopes is at USD 7,400. As a consolation, the bulls can consider something that has already occurred several times before, which is that when Bitcoin has experienced a great rally and then corrected 40%, it has finally doubled its prices. As a consequence, the ground of the current fall might be very close.
From a fundamental point of view, the flow of news that has reached the market during the last sessions has not been very positive either. The most negative are the problems undergone by Libra, the digital currency promoted by Facebook, after the project was abandoned by some very relevant companies such as MasterCard, Visa, eBay and PayPal.
In addition, a few days ago it was reported that the regulator of US markets, the Securities and Exchange Commission (SEC), rejected the approval of the exchange-traded fund (ETF) (ETF) promoted by Bitwise Asset Management and managed by NYSE Arca. However, this rejection has just been suspended and the decision will be reviewed. According to the SEC, the promoters have not been able to demonstrate that “fraudulent and manipulative acts and practices” in the Bitcoin market could be avoided, in a disapproval order issued last week. Currently, it is still not clear how long it will take the SEC commissioners to conduct the review.
By Willmen Blanco