- Bitcoin failed to breach past $11,000 for the fourth time in seven days
- Analysts are pointing to $10,250 as a key support level for the benchmark cryptocurrency
- Outside factors, including the charges filed against BitMEX by DOJ, added to the market pessimism
With Bitcoin failing to break past $11,000 for the fourth time in seven days, analysts are predicting that the benchmark cryptocurrency will be revisiting the low $10,000s and will stay there in the short-term.
Bitcoin continued its string of losses Thursday, after it closed at $10,617, lower than the previous day and its lowest in the last eight days. As the benchmark cryptocurrency trades below $10,500, experts are looking at $10,250 as the next key support level.
According to NewsBTC.com, the first major support is at $10,350. If it fails, the next one is at $10,250. If that support also breaks, Bitcoin is likely to return to around $10,000.
In another report in the same publication, analyst Nick Chong says he believes Bitcoin is currently in a pivotal support level that stretches back to 2018. In the chart below, the resistance levels are the 2017 high of $20,000 and the 2019 high of around $13,000. The key support area is the 2018 low of $3,000.
However, more than the technical indicators, outside factors have played a major role in Bitcoin’s current position. Both the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) filed charges against BitMEX, a popular cryptocurrency exchange, for failing to implement anti-money laundering (AML) measures and for violation of the Banking Secrecy Act.
The market has reacted strongly to the news Thursday. Within 30 minutes, Bitcoin’s price fell from $10,640 to $10,350, before closing at $10,617. Coindesk said this was because BitMEX market share had receded from what it was four years ago, when it introduced “perpetual bitcoin leveraged swap,” making it easy for customers to trade the equivalent of $100 of Bitcoin for every $1 down.
While Bitcoin looked poised to slowly recover, it was announced that President Donald Trump tested positive for COVID-19. This time, not only Bitcoin went down but the entire cryptocurrency market, as well as the stock markets around the world.