Bitcoin Faces Another Test at 10,000

The cryptocurrencies have been quiet over the last few weeks, but things ramped up on Tuesday. The U.S. Commodity Futures Trading Commission (CFTC) sent subpoenas to crypto exchange Bitfinex and Tether.

The company suggests that its coins (which are linked to the USD), are backed by physical currency. Skeptics suggest that they don’t have the reserves. This would be a huge scandal for the digital currencies which have certainly been through a rocking period, ever since Bitcoin tagged 20,000.

Bitcoin’s Big Level

The news sent shockwaves through most digital currencies and it put Bitcoin back to the 10,000 level. At the moment (in Asian trade), Bitcoin is trading below 10,000.

We have an open buy signal out on BTC at current levels and as you can see on the chart, are expecting a push back into the top of the trading range.

The top of the range would be around 13000, with key support lying at 10000. If we get a break below the most recent lows, or anything sub-9000 then there might just be some more downside ahead.