Bitcoin price may drop below $9000

17.07.2019 14:45:52

Today, Bitcoin has recorded one of the biggest drops in 2019. At Bitstamp, Bitcoin's price reached $9,049, which is 6% lower than the opening price of $9,650. This is the second major daily drop in 2019 - the first, by 13.6%, was observed on June 27.

The media connect the recent fall with the growing calls for regulation of the Libra project from Facebook and the cryptocurrency market as a whole. Facebook's plan to launch a new digital currency was criticized at Senate hearings - one of the senators called the company's initiative “delusional” and unreliable. Last week, President Donald Trump also criticized the Libra project and Bitcoin.

Changing market sentiment is likely to affect the price of Bitcoin.

btcusd-17-July.jpg

On the daily chart, the bull high-lows model was canceled by closing on Tuesday below $9,615, which is also confirmed by the fall of the 14-day Relative Strength Index (RSI).

Also, prices are trading below key support, 50-day MA for the first time since early February.

Chaikin's cash flow shows that buying pressure has significantly eased over the past three weeks. Thus, Bitcoin looks ready to drop to $9,097 (May 30 maximum). A weekly close above $12,000 can void a bearish scenario.

Shorter timeframes also suggest a deeper fall, but long-term prospects will remain bullish as long as prices hold above the 200-day MA ($5983).

Some experts believe that the Libra has more prospects than Bitcoin, as it will be a transparent asset. Investors prefer to invest in those tools that are protected by law. Therefore, after the release of the Facebook coin, we will witness a more active flow of capital into this cryptocurrency.