Major correction on Bitcoin

Bitcoin dropped heavily over today’s Asian morning after media reports suggested that large investors intend to reduce their exposure or even realize the profits of the last months surge in the cryptocurrency. Should the reports be true, there could be a shift from few large holdings and large investors to smaller holdings and more but smaller investors. Also it could be the case that more and more investors are opting to switch to other trading instruments which allow them to go short on their investment, hence providing more flexibility. On other news reports, Goldman Sachs is intending to open a cryptocurrency desk, accommodating the increased demand from its clients.

In the meanwhile Bitcoin dropped heavily yesterday and during today’s Asian morning, breaking the 15580 dollar support zone and tested the 14000 support level. We still have the view that the bears have the upper hand on Bitcoin and should they continue to do so, the cryptocurrency could break the 14000 USD support level and test the 12000 support zone. Should the 12000 support zone also be broken we could see bit coin aiming for the 8900 level which could be viewed as the starting point of this month’s surge. On the other hand should the bulls take control of the market we could see the cryptocurrency breaking the 15580 resistance level and aim for the 17000 resistance zone.