Bitcoin is in a seemingly downward spiral. It has reached its lowest value since May.
For the first time, Bitcoin dropped below $7,000 since November.
Allegedly, the sell-off was pushing the cryptocurrency to this level since Many.
Now, watchful speculators and analysts are looking to see if the coin can read the $6500 level. They believe that should it fall below that amount, it will go down further to $4000.
Bloomberg reported that according to technical analysts, this is an unprecedented low level, something that has not been seen since March.
One equity strategist working at Miller Tabak & Co, Matt Maley, said that it is undeniable that this series of lower highs/lows for the past six months is worrying. It is certainly not a positive indicator of Bitcoin’s viability.
He added that while he thinks Bitcoin is viable, it is going to need more time to gain traction than people thought it could take.
As China acts to investigate the space, intense pressure has been placed on the performance of cryptocurrencies.
In June, Chinese authorities had made several arrests of people suspected of pyramid schemes. These people’s behaviors and activities were shady to say the least. Most promised returns that are too good to be true, some as high as 600%.
Watchdogs, based in Shanghai released some notices about dealing with and cleaning up these companies dealing with cryptocurrency trading.
Bitcoin Drop Triggered by Chainanalysis
For the first few days of December, Bitcoin hovered between $7200 and $7400. It would be better if they stayed that way, but the losses accelerated on Monday.
The analysis of Chainanalysis Inc., a researcher, is reportedly the trigger of the downward trend. According to the analyst, the coin will possibly remain under pressure as criminals behind a $2 billion theft will continue to dump coins in exchange for cash.
In New York, Bitcoin dropped as much as 5.7 percent and reached around $6,885. On the other hand, The Bloomberg Galaxy Crypto Index, experienced a high 7.9 percent drop. This index is tracking some of the most known cryptocurrencies today.
Selling to Bottom Soon?
According to John Todaro of TradeBlock, where he works as a director, this downward trend meant there is an oversold situation.
As Forbes reported, other analysts firmly believe that there is no recovery n sight. Bitcoin prices will still be pushed lower in the near future.
And even if though analysts asserted that bitcoins have not yet reached bottom, Topdaro added that he expects selling to the bottom soon.
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