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

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 market’s sell-off accelerated, particularly after Coinbase-fame Brian Armstrong warned about tighter crypto regulations in the US.

 

 

Share

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email

Get in touch

If you would like to conduct an interview, call me for a conference, contribute to the blog, or for any other request, you can contact me directly. You will also find the contact details of Market Securities if you would like to receive their research offer (dedicated to institutional investors).