Bitcoin just traded to its lowest level since September 2017, now trading at $3500 according to Classiarius and CoinDesk pricing. After dropping below $6,000 in mid-November, the cryptocurrency has extended its fall by 35 percent in only seven trading days. Some are now calling for a $3000 bottom and by the looks of the current trend, this level will trade in days. The worlds largest cryptocurrency continues to fall, much like the sell-off in April 2013, when it dropped 44 percent. The current sell-off will likely challenge this 44 percent number.
Some traders are now being forced to capitulate and sell all of their positions, adding fuel to the fire. This comes on the back of a report by Bloomberg News that states US regulators are studying the Bitcoin rally to $20,000 last year that may have been driven by market manipulation. The US Department of Justice, according to this report, is looking at a coin that was built on a 1:1 by the US dollar, tether, which may have been used to prop up Bitcoin. There are several sources reporting these details.
Currently, one trader who is experienced in cryptocurrencies is looking for 3000 as a support level in this key digital currency. According to Michael Moro, who spoke to CNBC, institutional investors are interested in Bitcoin and really do not care where is trades into the end of 2018, as they are looking 3 to 5 years out. We at Classiarius, have been looking at the $6,000 to $5,500 range as support but this coin has blown threw these levels.
The coin was trading at $17,000 at the start of 2018 and is now 75 percent lower, trading at $4,400 – most of the most aggressive selling of late has taken place in only 7 trading days. This current sell-off is one of the most aggressive in Bitcoin history and is adding fear into a market that is happy to capitulate.