Today, June 10, threatens to become a «black Sunday» for the cryptocurrency market. Which began on Saturday evening drop in less than a day has exceeded 10% for most of the main cryptocurrency and has not yet shown signals of stopping. Almost all the leading cryptocurrency of the TOP 100 Coinmarketcap demonstrate such dynamics.
The bitcoin exchange rate during that time fell from $7650 to $6650, breaking the psychological threshold of $7000, which the bears twice unsuccessfully stormed in the second half of may. Thus, a drop of $1000, or almost 15%, could have longer-term consequences.
The last four months the bitcoin exchange rate was in the range of damped oscillations, forming a large triangle. Now he is broken down, and the «law of the triangle», known in classic technical analysis, the decline after the breakout line of the triangle could reach the height of its first subwave, which is quite impressive and is about $5 750. If you follow this forecast, bitcoin will stop just above $1000, losing all «acquired by overwork» from the beginning of 2017.
Of course, the laws of classical technical analysis very approximately work for such volatile markets like crypto, and more than five times of the collapse can be expected. And yet, the bears now have a distinct advantage and seek to use it to the maximum. On the other hand. if you look at trading volumes — they are relatively small, and hence to panic sales has not yet reached and the bulls are sitting in ambush, waiting for the right moment to attack.
The main reason for today’s drop, analysts say the investigation of four crypto-currency exchanges: Bitstamp, Coinbase, ItBit Kraken and started us regulator commodity exchange Commission commodity futures trading (CFTC). The Commission suspects that these exchanges were manipulating the price of bitcoin, which affected the price of bitcoin futures traded on the CME and CBOE.
Back in January, after the expiration of the first futures contract, the Chicago stock exchange CME has requested information about the auction of a number of cryptocurrency platforms, but most of them refused. The differences between the exchanges was forced to intervene CFTC, which opened its own investigation. And even though nothing terrible has happened yet and no charges against cryptocurrency sites have been named, many traders took the news as a signal to sales. Growing pressure from regulators and the lack of positive market dynamics have forced the bulls to lay low and expect a clarification of the situation. The future behavior of the market will obviously depend on the news in this case.