Bitcoin showed further signs of trouble on Thursday after a strong break below the 50-week moving average. The notoriously volatile market enjoyed a 50% bounce from the April lows of $6.5k, stopping short of $10k. However, the recent bull move has been short-lived as recent lows of $7.2k are a clear breach of the pivotal $7.6k level.
ETX Capital Analyst, and Crypto Specialist, Michael Baker insists the battle is now on.
“This is a significant development for Bitcoin, we have only seen a few weeks over the last year where the price has dropped below the 50-week SMA. Sustained holds and moves further away from $7.6k will no doubt put the jitters in the Bitcoin bulls. It will now be a battle between the Bulls and Bears.”
If the technicals weren’t bad enough Bitcoin is the subject of a criminal probe by the US justice department, over alleged illegal practices and price manipulation. The Commodity Futures Trading Commission (CFTC) is cooperating with the probe, however, it is unclear where the investigation will lead given the fragmented nature of Bitcoin (Bloomberg).