The Bitcoin news now show that the price of the most dominant cryptocurrency is below $7,500 and the moment many traders have anxiously anticipated arrived this morning. The Bitcoin (BTC) price plunged below $7,800 and eventually settled near $7,400. Right now, there are three likely reasons why BTC has fallen so much and an analysis if something is going to happen in the near future.
It all started when BTC dropped to $7,800 and proved its bear position. Then, it retraced back to $7,400 which was yesterday – showing a major weakness and triggering many other coins to drop as well.
Let’s explore the three likely reasons that caused the price of Bitcoin to suddenly plunge today. They are the following.
Technicals: The Support Finally Gives Up After 9th Try
Ever since dropping from $9,500 on September 24, Bitcoin managed to drop below $7,800 on eight separate occasions and the current price dump is the ninth. From a technical point of view, Bitcoin was already biased towards bears on the short-term timeframe and the bias has also steadily increased on the longer time frame.
Today’s price dump liquidated $200 million worth of leveraged longs at BitMEX. As the Twitter analyst named “taiwandan” said, one of the three likely reasons BTC is dropping are precisely the technicals. He also noted that “every bid from $7,800 to $6,200 wiped out in less than 15 minutes.”
Zuckerberg Going To Washington
Just like the traditional markets, the crypto sector is heavily influenced by media and it is very possible that the recent crypto news exacerbated the shock to Bitcoin’s price.
Today, the CEO of Facebook Mark Zuckerberg is testifying before US lawmakers about the Libra project, political ads, and the proliferation of fake news on the platform. It seems that every time the US Congress discusses cryptocurrency and Bitcoin’s price drops.
Quantum Breakthrough By Google Spooks BTC Investors
The Google quantum breakthrough is what is spooking the Bitcoin investors – and last of the three likely reasons that BTC is dropping.
The quantum computers solving complex algorithms seem to make investors nervous that the Bitcoin network is under threat. It is very possible that some crypto investors jumped ship as the story circulated through the New York Times, Bloomberg and other crypto media portals.
Today’s selloff on the markets proved that BTC is weak and now holding below $7,500.
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