Bitcoin faced an increased selling pressure below USD 11,200 and it moved below the USD 11,000 level. Similarly, altcoins extended declines, including Ethereum’s Ether, trading lower by 3.5% to USD 1,165.
The main driving force was again regulation since Federal judges in Brooklyn, New York, are said to discuss whether bitcoin can be regulated or not. They also want to figure out what exactly bitcoin is and its purpose.
As per Fortune, a former U.S. Securities and Exchange Commission and Justice Department lawyer, asked recently, “If it’s not a security, then what is it?” This has raised concerns and the market seems to be nervous with regulatory talks in Brooklyn, New York.
In an interesting event, there was a research conducted by a few researchers at the American Institute for Economic Research (AIER) and Missouri University to know whether bitcoin price is driven or manipulated by traders.
They are trying to present a connection between major price movements in bitcoin and its relation with news events. As per the research of Alexandra Emily, Benjamin Loeper, and Edward Koharik, under the supervision of their professor Dr. Ana Ichim and AIER staff, bitcoin’s largest price changes coincide with major news events about the cryptocurrency. It states:
“If Bitcoin trades in an efficient market with enough buyers and sellers, theory holds, its price should reflect all publicly available information about it, and changes in price should reflect new information. However, Bitcoin might not yet meet this standard”.
Bitcoin price was down today and it traded below the USD 11,000 support. It seems like BTCUSD is under pressure and it could move back towards the USD 10,500 support. On the upside, the price is facing a major hurdle near USD 11,200.
Bitcoin cash price was also down by 4.17% to trade near USD 1,626. Yesterday’s best performing altcoin, Neo also suffered losses. It fell by 5.5% to USD 152.
ETHUSD is currently trading near USD 1,165 and it seems like there is a decent support forming at USD 1,120.0. On the upside, Ether has to settle above USD 1,200 to increase the chances of further bullish acceleration towards the USD 1,280 level.
To sum up, the market is currently in the red, but downsides could be limited in BTCUSD by the USD 10,500 support.