Analysts See End of the Year Weakness in Bitcoin Price
$BTCUSD ,$CME, $JPY
Bitcoin, the biggest cryptocurrency, extended its decline over the Christmas Holiday weekend, failing to reverse a selloff that began after an unprecedented rally fell short of cracking the $20,000 mark.
The fall is expected to bring more end-of-year weakness to a market that last week had its worst 4-day decliner since Y 2015.
“The West is what’s causing this selloff,” said the senior market analyst at Tel Aviv-based online broker eToro, pointing to increased trading in USDs and less in Japanese Yen (JPY).
Note: Israel’s markets regulator will propose regulation to ban companies based on Bitcoin and other digital currencies from trading on the Tel Aviv Stock Exchange. Shmuel Hauser, the Chairman of the Israel Securities Authority (ISA), told the Calcalist business conference he will bring the proposal to the ISA board next week. If approved, it would be subject to a public hearing and then the stock exchange bylaws would need to be amended. “If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended,” Mr. Hauser said, adding the ISA must find the appropriate regulation for such companies.
The recent cryptocurrency surge was so steep that investors were prone to take money off the table going into the Christmas Holiday season.
The retrenchment is not typical for the cryptos, which often snap back after a few losing sessions. The last time Bitcoin dropped for five successive weekdays was September and, before that, in July.
The fall came on with several warnings over last week from financial authorities about elevated risk in holding digital coins.
The digital market soared to astronomical highs, it has got to come back to the line. Something that goes up 150% in less than a month is going to have double-digit Fibo retracement.
Bitcoin was down 2.7% from Friday’s close to $13,850 as of 10:39a in New York Monday, when Key US markets were closed Christmas Day.
That’s 29% off its record high of $19,511, based on our price data.
Bitcoin is currently trading at: 14,202.5049, +49.2295, or +0.35%, as of 1:24a GMT, the market is open.
Bitcoin’s record high was reached on 18 December just a few hours after CME Group Inc.(NASDAQ:CME) debuted futures contracts, which some traders said would encourage traders to put on short position.