Bitcoin Price Analysis: Is It Over?

Is contagion from India’s Zebpay flash crash to $5,700 responsible for the pullback in bitcoin price or something else in the works?

Market Overview

Up till yesterday, BTC traded within a narrowing triangle, leaving investors guessing which side the cryptocurrency would choose but as a third attempt to surpass $6,800 failed, BTC briefly reversed back below the $6,700 support and $6,600 protected against further decline.

Fast forward to Friday and BTC broke the support at $6,720, $6,550 and as mentioned earlier, touched a new monthly low near $6,075.

Generally, the king of cryptocurrencies has been in a downtrend since dropping out of the ascending wedge on June 4th, but there are other factors that could be contributing to the current pullback.

This week’s $30 million Bithumb hack appears to have had limited impact on BTC price and its not yet clear whether or not the threat of accelerated regulation from the South Korea government is impacting cryptocurrency prices.

It seems that BTCs pullback can mostly be attributed to a flash crash in India that occurred as Zebpay exchange informed users that they will no longer be able to process deposits and withdrawals after July 5th. On the other hand, the Mt.Gox whale has promised to not liquidate more BTC and BCH to compensate victims of the Mt.Gox hack and if this is to be believed this could be good news for the future stability of BTC price.

Daily Chart

Earlier in the week bitcoin had recovered well from its recent swing low at $6,100 and spent the remainder of the week struggling to overcome strong resistance at $6,800.

Bears have clearly reasserted control as bitcoin dived below the ledge at $6,750 and descended as low as $5,914 on Bitfinex. At the time of writing, BTC gravitates somewhat indecisively around $6,100 and closed roughly 9% down for the day.

The drop to $5,914 means that BTC has fully retraced from the April high at $9,990 and the drop below $6,000 is the lowest price since the 6th of February when BTC dropped to $6,009…

Read Full: Bitcoin Price Analysis: Is It Over?