Bitcoin Global News (BGN)
May 25, 2018 -- ADVFN Crypto NewsWire -- Bitcoin fell from $8,500
on Monday to below $7,300 recently, even lower on some exchanges,
such as Bitfinex. The initial drop was extremely quick, signaling
it could have been one individual or group selling off a large
chunk of BTC. There have been two subsequent quick changes in the
past 24 hours, but with lesser effect on the price.
Technical
Outlook
RSI is showing oversold. The price
has fallen to and bounced along the 61.8 percent Fibonacci
retracement, meaning the bearish trend has been strong, but this is
also a point that generally signals a reversal. Similarly,
the buy markets percentage has
dropped to 8%. Anything below 10% is considered to signal a
reversal. The most recent reversal using this metric came at 4% in
March.
The 5-day and 10-day Moving
Averages show the strong bearish pattern from May. The RSI is
holding between 50 and 30, which isn’t too strongly an indicator of
one way or the other.
A successful close above the trend
line and $7,700 may perhaps open the doors for more
gains.
Bitcoin price is showing positive
signs above $7,400 against the US Dollar. BTC/USD must break the
$7,650 and $7,700 resistance levels to recover further.
Fundamental
Outlook
It’s hard to imagine Bitcoin
without these kinds of drops at this point. The drama continues to
raise public interest. The U.S. government has launched
an investigation into price
manipulation on cryptocurrencies like Bitcoin and
Ethereum. While this isn’t the best news, it’s better than nothing
being done.
It also doesn’t stop the positive
changes from happening as well. A German Exchange recently said
they are interested in adding BTC products and
Paypal CFO says they will support BTC in the
future.
Price Manipulation
Investigation
The investigation is focused on
practices that can influence prices such as spoofing, or flooding
the market with fake orders to trick other traders into buying or
selling. Federal prosecutors are working with the Commodity Futures
Trading Commission. These tactics are studied at the University
level as well.
John Griffin, University of Texas
finance professor studied manipulation specifically in digital-coin
markets commented to Bloomberg:
“There’s very little monitoring of manipulative trading, spoofing
and wash trading. It would be easy to spoof this
market.”
By: BGN Editorial Staff
News:
Bitcoin
(BTC)
Cryptocurrency
Blockchain