Therefore, Bitcoin will probably have to fall to $13,000 before it can rise again
- Since Bitcoin reached its all-time high in the region around the middle of the $19,000 mark, it has continued to fall.
- There are a number of factors driving this move down, including selling pressure resulting from the refusal, fear of regulatory repression in the US and the resumption of withdrawals at OKEx.
- The combination of these factors has created a perfect storm for bears and they appear to be taking full advantage of it.
- One trader believes that Bitcoin has quite a way to go before it finds significant support and starts to rise higher.
- He is paying particular attention to a decline towards $13,000 and notes that BTC still appears to be „way overdrawn“.
Bitcoin has completed a full 180 degree turn, although the crypto currency’s earlier upward momentum is now easing as bears aim to lower it significantly.
Selling pressure, seen as a result of the $19,500 rejection, is undoubtedly the trigger for this move, but a number of other factors have sustained it.
Recent statements by the US Treasury Secretary about cracking down on private crypto wallets Profit Secret have scared investors and led to a sudden influx of selling pressure on the crypto currency.
In addition, the reopening of the OKEx crypto stock exchange also coincided with this slump – suggesting that its users may be taking profits off the table.
Bitcoin shows signs of weakness at $17,000
Bitcoin is currently quoted at a price of $16,900. This is roughly the price at which it was traded during the last day.
The support that BTC had previously held above $17,000 seems to be evaporating, which could be a sign that a downward movement is imminent in the near future.
Should this level turn into resistance, this could put Bitcoin’s price action firmly under the control of the bulls.
Analyst: Movement to $13,000 could be imminent
Regarding Bitcoin’s price action, one trader now states that a move towards $13,000 may be imminent in the near future.
He points out that he could initially consolidate above his weekly support at $16,200, eventually breaking through this level and opening the gates for an even bigger move down.
„Unlike ETH, BTC looks well beyond its weekly 21EMA, still far from interesting support. My ideal entry would be the main support @ 13k as outlined. At the moment we could hold the weekly support of 16213 and then move down for an ABC correction.
Bitcoin’s price action in the coming days should give serious insight into the outlook for the aggregate market in the coming weeks.