Bitcoin falls under $ 7,000

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As visual representation of digital cryptocurrency, Bitcoin Photo by S3studio / Getty Images

Bitcoin rose to an intra-day peak of $ 8,486 and closing $ 8.396 on July 24th after the rebound from the recent low closing of $ 5.871 on June 28th and the daily minimum of $ 5.538 on July 2. However, since Tuesday the Bitcoin has dropped more than $ 1,000 to just under $ 7,000 on Saturday. [19659003] There have been two separate recessions over the last five days, both of which may be due to a very large bitcoin traffic that heads south and leads to a large number of cryptocurrencies affecting the market.

Bitcoin week Coinmarketcap.com

Friday, August 3 OKEx, a Hong Kong exchange Bitcoin announced to have frozen a customer account due to the start of the customer of "an order of posi unusually large transaction (4,168,515 contracts). "This happened on July 31st and with each $ 100 wor contract this position was almost $ 420 million.

OKEx said," Our risk management team immediately contacted the client, asking the client several times to close partially positions to reduce the overall market risks. However, the client refused to cooperate, which led to our decision to freeze the client's account to avoid the increase of further positions. Unfortunately, after this preventive action, the price of BTC collapsed, causing the account to be liquidated. "

This seems to be at least one of the reasons that Bitcoin dropped from about $ 8,100 to $ 7,500 on Tuesday If OKEx ended up dumping a large number of Bitcoins on the market, it could have created downdraft. [19659009] The bitcoin was trading between $ 7,350 and $ 7,600 for the rest of the week until Saturday, when it dropped to just under $ 7,000. This second decline could be related to the OKEx press release about what it was supposed to do. the highly volatile nature of the cryptocurrency market, concerns about "whale" trading and hacking would not be unreasonable to see sellers lighten positions and there will be a buyer strike

The downward trend could still being in force

Bitcoin had broken its strong downtrend from its high of $ 20,000 in December 2017 when it returned back to the beginning of July as can be seen in the long run blue nea. However, with this recent pull-back, there may be another downtrend line .

Bitcoin Price Chart StockCharts.com

The analyst was looking for a pull-back

Rob Sluymer, Strategist Technical Strategist of Fundstrat Global Advisor was looking for a short-term withdrawal since Bitcoin was approaching its next resistance level of $ 8.591. The cryptocurrency was forced, but fell below the Sluymer support level of $ 7,400 to $ 7,800. However, I do not think Sluymer would have counted on support levels to stop the Bitcoin crisis when an event such as what appears to have happened at OKEx occurs. An overbought condition can also be seen at the top of the previous graph from the bubble in the RSI, or Relative Strength Index.

Bitcoin Technical Analysis of Fundstrat Fundstrat, Bloomberg, Optuma

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As a visual representation of digital cryptocurrency, Bitcoin Photo by S3studio / Getty Images

Bitcoin surged to an intra-day peak of $ 8.486 and closing at $ 8.396 on July 24th after the rebound from the recent closing low of $ 5,871 on June 28 and its daily minimum of $ 5,538 on July 2. However, since Tuesday the Bitcoin has dropped more than $ 1,000 to just under $ 7,000 on Saturday.

[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.] [Author’s note: There is no official price for Bitcoin, so I use round numbers and reference Yahoo! Finance data.]

There have been two separate recessions in the last five days, both could be due to a very large bitcoin traffic that heads south and leads to a large number of cryptocurrencies affecting the market.

Bitcoin week price chart Coinmarketcap. com

Friday 3 August, OKEx, a Hong Kong exchange Bitcoin announced it had frozen a customer account due to the customer's initiation of an unusually large long-term order (4,168,515 contracts) "This happens de July 31 and with each contract worth $ 100 this was almost $ 420 million.

OKEx said: the risk management team immediately contacted the client, asking the client several times to partially close positions to reduce overall market risks. However, the client refused to cooperate, which led to our decision to freeze the client's account to avoid the increase of further positions. Unfortunately, after this preventive action, the price of BTC collapsed, causing the account to be liquidated. "

This seems to be at least one of the reasons Bitcoin dropped from about $ 8,100 to $ 7,500 on Tuesday If OKEx ended up dumping a large number of Bitcoins on the market, it could have created downdraft. [19659009] The bitcoin was trading between $ 7,350 and $ 7,600 for the rest of the week until Saturday, when it dropped to just under $ 7,000. This second decline could be related to the OKEx press release about what it was supposed to do. the highly volatile nature of the cryptocurrency market, concerns about "whale" trading and hacking would not be unreasonable to see sellers lighten positions and there will be a buyer strike

The downward trend could still being in force

Bitcoin had broken its strong downtrend from its high of $ 20,000 in December 2017 when it returned back to the beginning of July as can be seen in the long run blue nea. However, with this recent pull-back, there may be another downtrend line .

Bitcoin price chart StockCharts.com

The analyst had tried a back

Rob Sluymer, technical strategist of Fundstrat Global Advisor, was looking for a short-term withdrawal since Bitcoin was approaching its next resistance level of $ 8.591. The cryptocurrency was forced, but fell below the Sluymer support level of $ 7,400 to $ 7,800. However, I do not think Sluymer would have counted on support levels to stop the Bitcoin crisis when an event such as what appears to have happened at OKEx occurs. An overbought condition can also be seen at the top of the previous graph from the bubble in the RSI, or Relative Strength Index.

Bitcoin Technical Analysis of Fundstrat Fundstrat, Bloomberg, Optuma

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