What could have been the cause? Maybe the Investigation of the activity of the Bitfinex and Tether exchange by the American regulator led to a sharp drop in the rate of bitcoin. The regulator finds out whether Tether, the issuer of the crypto dollar, actually owns the appropriate number of real US dollars.
As the news spread about the investigation, the bitcoin rate collapsed below $ 10,000. Within a day, the
Cryptocurrency lost about 10% of the value. It is noteworthy that the fact of the investigation itself, which lasts for almost two months, did not affect the cryptocurrency market at all - the collapse occurred yesterday when the news spread to the media.
Bitcoin is back above $10,000, but the gains could be short-lived, the price charts indicate.
The 15 percent drop from the weekend high of $11,942.25 signals a continuation of the series of lower highs on the price chart, suggesting the bears remain in control.
That said, the quick rebound from $9,627.89 to $10,000 adds credence to the argument that the cryptocurrency could be forming a base around $10,000.
The 4.9 percent rally from the intraday low of $9,627 looks like a technical correction amid a bigger downtrend. Further, a break below $9,780 could result in sharp losses.
As you probably know the rate of all the Crypto-currency is correlated with the bitcoin rate, so, unfortunately, we should not expect a bullish trend in the coming days.
source: coindesk.com
image source: unsplash.com @davidsonluna