- Bitcoin is falling fast, down 25% in seven days.
- The CEO of Morgan Creek Digital says the collapse will purify the industry.
Bitcoin refreshed 2018 low during Asian hours. The largest cryptocurrency dropped to $4,554 before recovering to $4,591 by press time. The collapse on the cryptocurrency market has resumed after a short-lived respite and $4,000 for BTC/USD may not be ruled out at this stage.
According to Founder & Partner at Morgan Creek Digital Anthony Pompliano the current decline will have a purifying effect on the industry, clearing it from random people. This refers mainly to ICO projects and crypto investment funds that mushroomed during the crypto boom. Now that the market entered into an extended bearish phase, they will have to close business or even file of bankruptcy.
“Many crypto funds and ICO projects are about to race to shut down or declare bankruptcy. They don’t even realize what is happening,” he tweeted.
Pompliano elaborates on the issue in his daily crypto newsletter ” Off The Chain”.
Bitcoin’s technical picture
We have entered an uncharted territory and the range not since mid-October 2017. The coin has lost a quarter of its value in one week and dropped under weekly SMA100 for the first time ever. From the long-term perspective, it brings SMA200 (weekly) at $3,143 in focus. This is a critical support that might be reached once $4,000 gives way.
On the upside, $5,000 remains the key resistance that needs to be taken out to bring some relief to the market and allow for an extended recovery towards the above said SMA100 at $5,825.
BTC/USD, the weekly chart
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