B Bitcoin

Bitcoin crashed by more than $1,000 in Asian trade amid profit taking and potential tighter regulation in the U.S.

26 November, 2020

Bitcoin and other digital currencies crashed Thursday in Asian trading, a slide likely to raise concerns about the sustainability of the recent spike in cryptocurrencies. Bitcoin slumped as much as 8.7%, the most since early August after failing to make record highs.

 

Bitcoin has more than doubled this year and was close to the record high of $19,511 set in late 2017. Most of analysts signaled that conditions have been overbought since mid-November.

 

In this context, Jean-Charles Gand, Chief Technical Analyst at Market Securities, noted that “Bitcoin has stalled below the key resistance level of its December 2017 highs. A mean reverting move toward its 50-day moving average is in progress. For the record, the price was +2 standard deviations above the average since October 21st.

 

 

In addition to technical patterns, potential profit taking, tighter regulation was also cited as a potential catalyst. Bitcoinist highlighted that “the Bitcoin marketโ€™s sell-off accelerated, particularly after Coinbase-fame Brian Armstrong warned about tighter crypto regulations in the US.