Bitcoin dropped yesterday beyond the late November levels when the rally had started. Key reason for the drop could be the Indian government’s expressed intention to ban cryptocurrency trading altogether. Also, another reason could be that Facebook could ban all advertisements promoting cryptocurrencies. On the crypto futures front, media reports suggest that CME takes a cautious stand towards introducing other cryptocurrencies after one and a half month of Bitcoin trading. Bitcoins downward trend seems to be followed by most cryptocurrencies confirming its role as a trend setter in the market. We stand by our view that as regulatory authorities intensify their efforts to regulate cryptocurrencies, Bitcoin’s value will continue to drop and that the bears will continue to have the upper hand in the market in the long run.
Bitcoin dropped yesterday breaking the 8920 support level, totally erasing the profits it had posted until the 18th of December. We see the bears to continue to have the upper hand on the bitcoin market in the long run and the price to drop even further. Should the cryptocurrency find fresh buying orders it may stabilize in the short term and even break the 8920 resistance level. Should on the other hand the selling pressures continue, Bitcoin could break the 7470 support line and hover below it.