- Cryptocurrency market is deep in red with BTC/USD exploring new lows.
- Traders switched into a glass-half-full mode.
The carnage on cryptocurrency market continues as Bitcoin, the largest digital coin out there, lost about 10% on Wednesday and touched the low at $6,121 before recovering towards $6,320 by the time of writing. The cryptocurrency market shed $50B of its total value in a week’s time as the sell-off has been snowballing with traders using all and every pretext to dump coins.
Cryptocurrency market is highly speculative and sentiment-driven, that’s why we cannot say for sure what’s driving the price lower now. Obviously, a combination of factors, such as force-liquidated position on OKEx, and SEC’s decision to postpone the verdict for VanEck increased the pessimism on the market.
Jani Ziedins from Cracked Markets predicted Bitcoin’s “nervous selling” to $6,000 and lower back in May when the coin slipped below $9,000; now he believes that the price can hit new 2018 low soon.
“It is hard to find anything positive to say about bitcoin. Failing to hold $8k, it didn’t take long for us to crash under $7k as any hope brought about by the latest rebound vanished faster than it appeared. If we cannot retake $8k support over the next few days, expect us to tumble through $6k support and start making new lows,” he wrote in his blog post.
Technically, BTC/USD broke from a triangular pattern, which creates more bearish opportunities. The price shall climb back above $6,800 in the nearest future to mitigate the downside pressure. Otherwise, we will see Bitcoin testing $6,000. This psychologically important handle is likely to motivate speculators to take profit on their short positions, which will lead to a short-term correction.
BTC/USD, a daily chart
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