Cryptocurrency bloodbath: Bitcoin below $12K
Fawad Razaqzada January 16, 2018 8:14 AM
Today’s small gain in the dollar or the fall in the pound following the publication of UK inflation data was nothing compared to the sell-off in crypto currencies.
Today’s small gain in the dollar or the fall in the pound following the publication of UK inflation data was nothing compared to the sell-off in crypto currencies. Bitcoin was down some 15% while Ripple had shed 30% at one stage. Cyptos have been held back in recent days amid increasing levels of scrutiny from regulators, most notably in South Korea, where the government is planning to clamp down on trading in virtual currencies. The justice ministry is apparently working on a bill to ban cryptocurrency trading through exchanges. If the bill is eventually passed by the National Assembly it would be very bad news given that South Korea is the world’s third-largest market for cryptocurrencies. The uncertainty is weighing on investor sentiment. However suggestions that this is the start of the demise of cryptos is very premature.
This uncertainty is reflected in price action, with Bitcoin trading near the lower end of its wide range. The key support that needs to hold on a closing basis is at 11400, a level which previously support and resistance. If BTC/USD breaks below this level then it could very easily drop to the next psychologically-important level of $10K next. Below that, the next support comes in at 8350, which was previously a resistance level. Meanwhile resistance comes in at 12800, last week’s low, followed by 13430, the low of the doji candle from Monday. If these levels break then Bitcoin will likely go above this week’s opening price level of 13648, which, if realised, would be a bullish outcome, particularly if the most recent swing high at 13495 is also taken out.
Source: TradingView.com and FOREX.com
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.