These lower lows are marking the key exit points for some traders. Bitcoin that goes below $ 4,000 has likely triggered "stop loss", predetermined trading levels that often exacerbate the sale. Those bitcoin support levels were interrupted when the cryptocurrency collapsed to new lows.
In recent weeks, even regulatory repressions have weighed on prices. The Securities and Exchange Commission announced its first civil sanctions against the founders of cryptocurrency last week, in the ambit of a comprehensive regulatory and legal crackdown against fraud and abuse in the sector.
Last week, Bloomberg News reported that regulators are studying whether the bitcoin rally at nearly $ 20,000 last year was the result of market manipulation. The US Department of Justice is investigating whether the cable, a controversial cryptocurrency that according to the founders is supported 1: 1 by the US dollar, has been used by merchants to support bitcoins, according to the report, which cites three anonymous sources that are familiar with the question