Bitcoin price will continue to decline for the next few hours owing to the recent revelation by top media sites that China is considering yet another heavy handed measure on cryptocurrency trading.
The report by Bloomberg caused a massive sell off and decline in prices of bitcoin, ethereum, ripple and almost all other cryptocurrencies out there being actively traded on cryptocurrency exchanges.
With the latest bearish run, bitcoin price is back to testing the support of its descending triangle pattern, which also happens to be the neckline of a complex head and shoulders formation. The cryptocurrency has already broken the $13,000 mark and some believe that this decline will not stop until it hits a low of $6,000. A bounce, on the other hand, could keep the consolidation going.
Bitcoin price is making another attempt to break below the support at $13,000 and doing so would mark the start of a longer-term drop. The continuous decline in bitcoin price over the last few days is indicating that the selloff will most likely continue and chances of recovery are grim right now.
Earlier, reports of South Korea’s plans to stop bitcoin trading in the country led to a massive selloff and prices fell sharply. Some statements indicated that the government simply wants to remove anonymity in transactions, leading some to believe that bitcoin trading could carry on.
The latest report about China’s possible measure has had a similar effect with prices falling by 15 per cent. As of this writing bitcoin is trading at just over $12,000 (global average).