The bitcoin market lost 30%

13 March, 2018

A number of negative factors led to a 30% loss in the bitcoin market


Crypto currencies grandpa -Bitcoin is going through not the best times these days. It seems that the situation in the market can become worse, and the sale-off will intensify amid some negative factors. What happened to bitcoin  last week? What provoked such powerful sales?

After an unsuccessful attempt to gain a foothold in the region of the local maximum (11.800-12.000), the digital currency moved to a sharp decline, declining by 30% in just four days. Several simultaneous negative events led to the fact that this sale-off increased after an unsuccessful technical attempt to gain a foothold in the local maximum area.

One of the factors that helped aggravate the recent sell-off was hacking of one of crypto currency exchanges Binance on Wednesday, March 7th. Of course, this is not the first precedent for the history of the Crypto-currency. Hacking have occurred before, but this is the first situation, when the breaking of the exchange led to a sharp and significant decrease in the price of the digital currency.

As for the Binance crypto currencies exchange, it is known about numerous complaints from users who reported that their coins are sold by chance, without their knowledge or consent. Immediately after the publication of the news, Bitcoin fell by about 7% in a few minutes.

This incident is another example of why more intensive regulation is required in the crypto currency exchange space. This also creates an additional element of uncertainty and mistrust in this digital market, forcing many to rethink about security of trade and crypto currencies in general.

Around the same time, the American regulator of the stock markets (SEC) issued a warning signal. In the regulator's statement, it was suggested that further study of measures to regulate the exchange of crypto-currencies should be made and that the SEC is ready to refer subpoenas to those who do not use the new established rules. This put additional pressure on the digital currency, which caused Bitcoin to drop to 10% in a few minutes. The combination of these factors led to the passage of an important strategic level of 10,000 for one coin.

As if these factors were not enough when news from Japan appeared-probably the world's most friendly crypto-trade market. It was reported that work was suspended on the two main exchanges of the country, Bitstation and FSHO. The state authorities had questions to the head of Bitstation who used the client funds to conduct personal transactions. FSHO also failed to protect customers as well. In addition, the financial services agency in the country imposed sanctions on five other exchanges because of their inability to improve security when working with crypto currency markets.

From a technical point of view, the situation on Bitcoin's chart is not simple. First of all Bitcoin did not pass the key test at $ 12 thousand, - whatever the reason (maybe not even the market quality), it is a negative medium-term signal for the whole market. Further, the situation may be aggravated by the emerging reversal pattern double top in the region of the local maximum of 12,000. Now the price action looks negative and suggests that we can see prices lower $ 10K for a long time. The $ 9700- $ 9,900 level is the key area in this respect. In addition, the potential loss of the popularity of this new market, amid security problems, can keep prices depressed much longer than can be expected.


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