Categories: CryptoNews

Has Bitcoin’s Price Finally Found its Top?

It has been two months since Bitcoin’s rally started. Since then the price has more than doubled reaching an all time high yesterday of $1892 on Bitstamp. Today we are seeing the first major pullback in the past few weeks which sent price plummeting over $100 in a matter of hours. One possible explanation to the drop, is James Comey’s – ex-FBI Chief – statements that Virtual Currencies hinder criminal investigations.

This recent statement reminded people that Bitcoin is still a threat to law enforcement and its use is still common in criminal organizations. Compared to more traditional payment methods like PayPal, or Bank accounts Bitcoin accounts can exist without linking any personal information. While the currency itself isn’t truly anonymous, its nature makes for an easier and more undetectable way to transfer money. In an appearance days before he was fired, Comey said:

“Some of our criminal investigators face the challenge of identifying online pedophiles who hide their crimes and identities behind layers of anonymizing technologies, or drug traffickers who use virtual currencies to obscure their transactions.”

Were these statements by Comey exactly what the bears were waiting for?  Reminding the public that Bitcoin is used by drug traffickers and pedophiles is a sure way to create negative pressure in the market. After the announcement, Bitcon’s price took a sharp turn and dropped over 5%.

Related Post

Taking a look at Bitcoin’s RSI we can see that it has almost touched the 30 level, meaning the market is becoming oversold. That means that the value of the market is slightly lower than the actual value. Such a drastic shift in RSI is often a reaction to a panic sell, which definitely occurred. In an oversold market, the price is expected to rebound, so keeping a close eye on the RSI might be a good idea to gauge if Bitcoin will bounce back or keep dropping.

Furthermore, if the price remains fairly steady between the $1750 and the $1800 levels for the next day or two, a head and shoulders formation will form. This will only make a trend reversal more likely. However, if the price bounces back to the $1850 levels, the latest panic sell was simply a test to shake out weak hands.

Moreover, the SEC will decide on Bitcoin’s ETF for a second time by May 15th. If the decision is negative, expect the price to drop sharply just like it did two months ago. However, in the unlikely scenario that the SEC will approve the appealed application, Bitcoin’s price may reach $2000 in no time.

Dislaimer: This is not trading advice, this article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

Mark Arguinbaev

I'm a 28 year old cryptocurrency entrepreneur. I was introduced to Bitcoin in 2013 and have been involved with it ever since. Fun Fact: I mined cryptocurrency using my college dorm room's free electricity.

Share
Published by
Mark Arguinbaev

Recent Posts

Embr’s Innovative CeDeFi Ecosystem Aims to Provide Long-term Value To Investors

There has been a lot of discussion about decentralization and why it is essential for…

10 hours ago

Top 5 Yield Farming Coins to Watch In 2022

With the recent boom of Metaverse and Meme coins, it seems that Yield Farming projects…

14 hours ago

Shiba Inu Price Up 5%, Gemini Adds SHIB to Its Platform

Shiba Inu price is up 5% today, peaking at $0.00005592 with a low of $0.00005235.…

20 hours ago

5 Metaverse Coins Valued Under $100 Million

With metaverse applications being the next big trend in crypto, there are still a lot…

23 hours ago

The Work From Home Revolution Has Arrived

With many employers and employees acknowledging the feasibility of remote work, the possibility of it…

1 day ago

WAX Price Up 44%, Increased User Adoption Signals Growing Interest in the Platform

WAX price is up over 44% today, making it the biggest gainer on Crypto.com. With…

2 days ago

This website uses cookies.