Goldie Sees Bitcoin Falling Below February Lows
Despite its more than 50% loss since highs reached in mid December, the digital coin is still up about 650% over the most recent 12 months.
Yet if Bitcoin breaks below support at $9,210, a team of Bitcoin Bears expects another sell-off is ahead.
Currently, Bitcoin is trading at: 9,345.793945, -269.590820, or-2.803743%, as of 5:12a GMT, the market is open.
In a note to clients Sunday the Goldman Sachs analysts warned investors that Bitcoin is in jeopardy of returning to its 6 February low at $5,922. The analysts noted that investors should pay close attention to the mid-to-low-$7,000 range, suggesting that a breakdown of that mark increases the probability of the coin falling below its February lows.
“The break is significant as implies potential for a more impulsive decline. The next meaningful support is down at $7,687 to $7,198.”
The 200-Day MA is important given that it held very well at the previous low in September,” wrote the technical analysts. “Getting a close break this time around would warn of structural damage, increasing the risk of new local lows (5,922). At this point, need to get back through 9,322 (the 26 February low) for this to stabilize.”
While Bitcoin managed to recover much of its value lost in the beginning of the year, surging nearly 100% to $12,000 after marking a bottom, the digital coin has again seen its value drop off as it struggles with fears over heightened government regulation and a series of crypto hacks.
Last week, the US Securities and Exchange Commission (SEC) issued a statement on the “potentially unlawful online platforms for trading digital assets,” indicating that traders should only buy and sell them on exchanges registered with the federal agency.