Odaily Frontline | Bitcoin hits 6-month low after breaking another key support level

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, Original Author: Todd White & Vildana Hajric

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Bitcoin’s sell-off intensified on Friday, sending it to its lowest point since May this year. Bitcoin has already fallen below another key support level.

As the world's most traded cryptocurrency, Bitcoin once fell 11% to as low as $6,798 before recovering some lost ground. Other mainstream coins such as Ethereum and Litecoin also fell sharply in tandem. For the first time since April, bitcoin failed to rebound after falling below its 200-day moving average, a signal that traders view the current plunge in bitcoin as a sign of market weakness rather than a buying opportunity.

Adding to the anxiety are ongoing concerns about the status of Chinese exchanges such as Binance Holdings Ltd. after the Chinese government officially announced a crackdown on crypto-related businesses. Binance has denied reports of police raids on its Shanghai office, saying the company does not currently have official operations in the city.

Note: The Block previously reported that a source revealed that Binance’s office in Shanghai was closed after being raided by the police. In response to this, Binance officials responded to Odaily by saying: First of all, we do not have a fixed office in Shanghai/China, so it is impossible for the police to raid and close the office; secondly, Binance’s organizational structure is flat and there are not many managers. The time zone of the executives who have direct work contact is often changing, and they are not in China; in addition, we not only have Singapore, but also distributed offices around the world.

"The market is generally cold and investment sentiment is low." Mati Greenspan, former senior market analyst at eToro, said, "People were excited when President Xi Jinping said that China needs to embrace blockchain, but this sentiment has faded away and the market is returning to 10 The level before President Xi’s speech at the end of the month.”

Technicals play an important role in driving virtual token trading, as they lack the fundamentals that can be analyzed with traditional securities. Many investors say the tokens have little intrinsic value beyond some seeking the anonymity of illicit financial transactions.

"Cryptocurrency traders are very superstitious about technical indicators, such as momentum," Greenspan said. He just launched his own research institute this week.

The relative strength index, which measures the speed at which a security's price moves, is a technical signal of momentum.

Note: The relative strength index (Relative Strength Index, referred to as RSI), also known as relative strength index, relative strength index. The index analyzes the intention and strength of buying and selling orders in the market by comparing the average closing ups and downs in a period of time, so as to make future market trends. It is used to compare the average increase in the price of a financial instrument relative to the average decrease in its price over a period of several days.

Here is what several traders and analysts have to say, for reference only:

Lou Kerner, Partner at CryptoOracle:

“Did they (Binance) ever have an office in Shanghai? Yes. Did they no longer have an office in Shanghai? That’s right. Did they leave because the government was closed to their business model? Yes. I think it’s It’s the most important message. For a lot of people who are day trading, it’s brutal. But if you’re doing what I’m doing — building an industry — then it’s just noise at the moment.”

Jonathan Zeppettini, Head of International Business at Decred:

"We're a bunch of paranoid people in the crypto community. You'll hear a lot of conspiracy theories blaming the regulated futures market for the downtrend. Personally, I don't think there's going to be a lot of volatility in the market, and futures volumes are still relatively low. Long-term Look, these mainstream products are very good for price discovery. What we may see is that this market has gone too far, too fast as the price of Bitcoin has increased by nearly 3 times in 6 months , and now it needs to take a breather and regain its footing."

Ed Moya, senior market analyst at Oanda:

“The sell-off was purely based on news from China. Many investors forget that the recent hit to the crypto market we have seen is nothing new. Beijing is doing everything it can to clear the way for the upcoming digital currency issued by the People’s Bank of China. Escort. Bitcoin has wiped out all the gains fueled by Chinese blockchain optimism, but the bearish momentum could still bring further losses next week.”

There are also rumors that Bitcoin miners have been selling as the market dips, Greenspan and others said.

It is worth noting that on the day of Bitcoin’s plunge on Friday, there were frequent reports of regulatory actions:post1. Shanghai headquarters of the central bank on November 22

post

"Increase supervision and control efforts to crack down on virtual currency transactions." The article pointed out that in recent years, hype related to virtual currencies (such as ICO, IFO, IEO, IMO, and STO, etc.) has been refurbished, speculation has prevailed, prices have skyrocketed and plummeted, and risks have rapidly accumulated. Relevant financing entities raise funds from investors or virtual currencies such as Bitcoin and Ethereum through illegal sale and circulation of tokens, which is essentially an unapproved illegal public financing behavior, and is suspected of illegally selling token tickets, illegally issuing securities, and Illegal fundraising, financial fraud, pyramid schemes and other crimes seriously disrupt the economic and financial order.

2. On November 21, the Office of the Leading Group for Special Rectification of Internet Financial Risks in Shenzhen City issued a risk warning on preventing illegal activities of "virtual currency", and notified the rectification offices of all districts, the Qianhai Administration, the Shenzhen Central Branch of the People's Bank of China, The Economic Investigation Bureau of the Municipal Public Security Bureau, the Municipal Communications Administration and other units jointly carry out the investigation and rectification of virtual currency trading venues. The survey work must be completed before November 25, and the list and information of enterprises engaged in virtual currency-related activities within its jurisdiction must be submitted to the Municipal Mutual Finance Rectification Office.showLatest news

At present, the Shenzhen Local Financial Supervision Bureau has identified 39 companies suspected of carrying out illegal virtual currency activities through the Lingkun system.to report3. According to the Beijing News on November 22