Home Cryptocurrency News Bitcoin Bitcoin Is On A Path To Test $6000 February Low

Bitcoin Is On A Path To Test $6000 February Low

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Fundstrat Global Advisors’ Head of Research, chart showing Bitcoin rising to $91,000 in March 2020 isn’t having a positive impact. Sunday’s drop may be due to an article from Sky News that Twitter is about to follow in the footsteps of Facebook and Google and prohibit digital currency advertising .

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

A visual representation of the digital Cryptocurrency, Bitcoin. Photo by Chesnot/Getty Images

Sky News report says that Twitter’s “new advertising policy will be implemented in two weeks and currently stands to prohibit advertisements for initial coin offerings (ICOs), token sales, and cryptocurrency wallets globally.” This could have more of an impact on new digital currencies trying to launch vs. established ones, such as Bitcoin. However, pretty much any bad news surrounding the industry indiscriminately impacts all of them.

Facebook updated its policy in January and Google followed up last week. Google’s new policy will take effect in June, so it may cause a spike in cryptocurrency advertising over the next couple of months as marginal ones take advantage of the time lag.

After failing to cross a Double Top its next support is $6,000

After creating a double top pattern on February 20 and March 5 at just under $12,000, Bitcoin has been on a downward trajectory. The next support level is its February 6 low of just above $6,000 . One item to note is that the trading volumes have not spiked higher vs. back in December and January (the bottom portion of the chart below). The past two weeks of selling have more orderly.

This can be viewed both positively and negatively. From a positive perspective, panic selling hasn’t set in, which makes for a more stable market (not that one could tell from 5% daily price swings). From a negative perspective, a spike in panic selling could indicate that the end of a downward price trend is nearing.

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Bitcoin has fallen from over $9,000 last Wednesday to around $7,350 on Sunday morning. It was hit hard on Wednesday, falling to just under $8,000, but recovered to $8,500 on Friday. Since then it has been on a downward slope and may need some “good” news to keep it from falling further. Even Tom Lee’s, Fundstrat Global Advisors’ Head of Research, chart showing Bitcoin rising to $91,000 in March 2020 isn’t having a positive impact. Sunday’s drop may be due to an article from Sky News that Twitter is about to follow in the footsteps of Facebook and Google and prohibit digital currency advertising .

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

A visual representation of the digital Cryptocurrency, Bitcoin. Photo by Chesnot/Getty Images

Sky News report says that Twitter’s “new advertising policy will be implemented in two weeks and currently stands to prohibit advertisements for initial coin offerings (ICOs), token sales, and cryptocurrency wallets globally.” This could have more of an impact on new digital currencies trying to launch vs. established ones, such as Bitcoin. However, pretty much any bad news surrounding the industry indiscriminately impacts all of them.

Facebook updated its policy in January and Google followed up last week. Google’s new policy will take effect in June, so it may cause a spike in cryptocurrency advertising over the next couple of months as marginal ones take advantage of the time lag.

After failing to cross a Double Top its next support is $6,000

After creating a double top pattern on February 20 and March 5 at just under $12,000, Bitcoin has been on a downward trajectory. The next support level is its February 6 low of just above $6,000 . One item to note is that the trading volumes have not spiked higher vs. back in December and January (the bottom portion of the chart below). The past two weeks of selling have more orderly.

This can be viewed both positively and negatively. From a positive perspective, panic selling hasn’t set in, which makes for a more stable market (not that one could tell from 5% daily price swings). From a negative perspective, a spike in panic selling could indicate that the end of a downward price trend is nearing.

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