Bitcoin Breakout: $7500 Falls - Forex News by FX Leaders
Bitcoin has Crashed

Bitcoin Breakout: $7500 Falls

Posted Thursday, October 24, 2019 by
Rowan Crosby • 1 min read

It’s been a quiet few weeks for Bitcoin and the other major crypto’s but all of that has rapidly changed.

Late yesterday, we saw a big drop out of the range that we’ve been stuck in of recent times. We had been closely watching the $7,800 level, which had seen price bounce off it on a number of occasions. Price smashed through and we are now really open to some more downside if that level then becomes key resistance.

The real trigger for the dump was Facebook boss, Mark Zuckerberg who was appearing before the US House of Representatives Financial Services Committee. He stated that he didn’t know whether Libra would work.

As we know, the idea of Libra has been a huge catalyst for the crypto space. When it was first announced, it lead to a huge spike. That spike was the first real rally we’d seen since the boom first busted.

But since that point, there have been many critics come out and attack the idea of Libra – particularly from US Lawmakers. We’ve also heard some major companies jump-off, including Visa, Mastercard and PayPal.

Now with Zuckerberg’s admission, or at least, a lack of confidence, this is a real worry for BTC.

That would tell me that we are very much open to another push lower. We are slowly but surely seeing more longs unwinding their positions and I would think with every new attack against Libra, there will be more to follow.

So for now, if price retests $7,800 and fails, that could be a good short opportunity. Also, a break of $7,000 would be a good momentum spot.

For now, I’ll be waiting to see how this range develops around the current price on a short-term basis and will be looking for more downside to come.

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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