Bitcoin is now down almost -43% from its highs just a few weeks ago! It is also down almost -17% in just 24 hours! (If you want to know what Bitcoin is click here)
This is a follow on monitoring on what is happening to Bitcoin after hitting its peak of close 20,000 USD. The crypto currency is now at a three week low and is crashing below 12,000 USD. (If you are asking if Bitcoin is a bubble check out my previous post here.)
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What triggered this drop today?
Fear is flooding the markets from the speculation that new regulations in South Korea could entirely change the use and trading of Bitcoin and other cryptocurrencies. At a very extreme end, there has been talk that Bitcoin could also be banned in South Korea, which is one of the countries where Bitcoin has surfaced as a mainstream crypto currency.
The MACD has now crossed from bullish to bearish with other short and mid term indicators now showing bearish momentum for Bitcoin. If no support is created, the strongest support for Bitcoin is still at 5,000. That’s still a far cry from where it is now. If it wants to have a fighting chance to at least bounce back, it has to head up and stay above the 13,000 level.
The chart below shows us that the crypto currency is now forming a mid term downtrend. This is not a good sign for those who bought at the peak.
Should bitcoin continue to drop, please follow your cut loss parameters should more bearishness abound. Should it bounce well and good but make sure to sell too once it hits your optimistic target price to sell.
More updates on Bitcoin as this story continues to unfold.