Bitcoin has depreciated by 14%. What is the reason?

Bitcoin has depreciated by 14%. What is the reason?

The exchange rate of bitcoin continues to fall this Tuesday. Cryptocurrency market is also reduced. The prospects of bitcoin and altcoins are not encouraging.

According to the data OnChainFX bitcoin (BTC) depreciated by 14% in the last 24 hours. At the time of article publication indicators according to CoinmarketCap, the cryptocurrency was trading around $11 651.

It is noteworthy that the world’s largest cryptocurrency by market capitalization decreased by 40% from installed just a month ago to a record high of $20 000.

The fall of bitcoin exchange rate largely coincides with a decrease in the total cryptocurrency market. According to CoinMarketCap, today, all the top 20 cryptocurrencies show a negative trend. Ripple (XRP), Lumen Stellar (STR) and Cardano (ADA) has lost more than 25%, and Ethereum (ETH) decreased by 18% in the last 24 hours.

What bothers cryptocurrency market?

First, comments on social networks indicate investor concern about the ban on trading digital currencies in South Korea and mining in China. Traders cooled action Asian regulators, which in recent years have focused efforts on combating speculative trading and fraud.

Second, futures contracts on bitcoin are traded at a significant discount, according to data from CoinMarketCap. The January futures contract on the CBOE traded at $11 510, and on the CME at $11 530. Meanwhile, BTC is trading spot at $11 816. Discount (futures price below spot price) bearish mood of market participants.

Technical analysis indicates that bitcoin could fall below $10 000.

The above chart (the prices are in line with Coinbase) shows the following:the Uptrend (blue line) was broken.Occurred the break of the triangle, indicating the sale of a record $19.891,99 (maximum of 17 Dec).The relative strength index (RSI) turned negative (below 50.00), which indicates further decline.50-day moving average (MA) dropped a bullish bias.5-day and 10-day moving averages indicate a strong bearish movement.

A possible scenario

The closure of the market (in UTC) below $13 000 will decrease to $8 350 (the support line of the uptrend).A small recovery is not possible, if bitcoin will stay above $11 004 (61.8% Fibonacci retracement) for the next few hours.A significant move above $14 000 (daily highs) is unlikely because of the indicators of the 5-day and 10-day moving averages.

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