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Cryptocurrency

Bitcoin Price Collapses Below $5,000

OctaFx | Nov. 20, 2018
Bitcoin Price Collapses Below $5,000

Bitcoin bulls have lived through another day of horror as the flagship cryptocurrency has smashed $5,000 support and dropped as low as $4,760 on Tuesday. What BTCUSD now headed? The following technical analysis reveals.

November 20, OctaFX – The price of Bitcoin dropped sharply, marking the eighth day of straight declines. Indeed, the market capitalization of all currencies tracked by CoinMarketCap declined to $160 billion. This was lower than last week’s $220 billion.

It is also significantly lower than the peak market valuation of more than $800 billion early this year. For the first time in 2018, the price of Bitcoin declined below $5000.

Cryptocurrency Apocalypse Continues

The decline in the price of cryptocurrencies started last week. This was after the hard fork of Bitcoin Cash, which happened on Thursday. A hard fork is a situation where a new currency is created from another cryptocurrency.

A good example of this happened in 2017 when Bitcoin Cash was created from Bitcoin. This time, a hard fork happened regarding Bitcoin Cash after developers and miners disagreed on the future of the currency.

Forking presents a major threat to the cryptocurrency industry because of the dilutive effects that accompany it. In other words, no one will want to own a currency that is likely to be broken down in the future.

Paragon Coin and CarrierEQ to Refund Investors Money

News of the hard fork came after the SEC asked Paragon Coin and CarrierEQ to return money to investors. The two companies raised money in 2017 through token sales but failed to register their ICOs as securities.

There is a fear that other companies that have raised funds through ICOs will be forced to do the same.

BTCUSD Technical Analysis

The BTCUSD pair is trading at $4,760, which is higher than the intraday low of $4,665. As expected, the price is below the major moving averages as shown below.

The RSI has fallen to the current 10, and the MACD too has fallen sharply. The decline in these indicators show that the downward momentum could continue.

Disclaimer

This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.