Bitcoin (BTC) Price Analysis: Can Bears Stay in Control?

Bitcoin (BTC) Price Analysis: Can Bears Stay in Control? 13

Bitcoin is trading below a descending trend line on its 1-hour time frame and looks poised for new lows. Price recently completed a bounce off the falling resistance and is nearing the first Fibonacci extension level.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This also recently held as dynamic resistance and could keep doing so.

RSI is pointing down to show that bears are in control of bitcoin price action at the moment. Sustained selling pressure could take it down to the 50% extension at $8100 or the 61.8% extension closer to $8000. Stronger bearish momentum could lead to a move to the 78.6% Fib at $7800 or the full extension near $7500.

Bitcoin (BTC) Price Analysis: Can Bears Stay in Control? 14

Another failed attempt at breaking past the $9000 handle kept bearish momentum in play and likely spurred more selling pressure.

Over the weekend, Mt. Gox suggested that further selling action could be underway as Nobuaki Kobayashi, the Tokyo-based court appointed trustee of the remaining bitcoin to be distributed among creditors, could be ready to sell more units again. Analysts estimate that around 8,000 bitcoin from two court ordered cold storage wallets have been recently shifted.

In other news, South Korea’s largest cryptocurrency exchange Upbit is under investigation for fraud. In a statement on their site, the company clarified:

Upbit is currently under investigation by the prosecution, and we are working diligently. Upbit services such as all transactions and withdrawals are operating normally.

Meanwhile the prosecutors noted:

The prosecution believes that Upbit has entered [into] the computer system as if it had virtual currencies that it does not actually own, and deceived customers. Upbit has been suspected of carrying out ‘book-trading’ without holding virtual currencies in a wallet.

This could keep investors on edge about regulation and potential exchange shutdowns in the country, which is one of the top markets for bitcoin.