Since July 10, the price of Bitcoin (BTC) has fallen from $13,161.86 to $9,229.91, with major cryptocurrency exchanges recording a 29.89% drop within a period of seven days. The recent pullback of Bitcoin is widely believed to be a technical factor that was pushed by sellers who took control of the market once the dominant crypto asset went below key support levels at $10,600 (double top neckline)
Criticism of Bitcoin by United States President Donald Trump and Treasury Secretary Steve Mnuchin could have contributed to the fall:
The change in sentiment around the crypto market following the remarks of President Trump and Secretary Mnuchin, as well as bearish technical indicators, are considered to be the major factors behind Bitcoin’s most recent correction.
Some industry executives have said that the remarks on Bitcoin by President Trump and Secretary Mnuchin can be acknowledged as a bullish event for the first cryptocurrency.
Essentially Bitcoin has gained enough awareness and interest from the mainstream and a broader market of investors to the extent in that the President of the largest economy in the world was pressured to comment on its growth.
However, the actual messages delivered by Secretary Mnuchin and President Trump were not positive, with President Trump describing Bitcoin as a speculative asset with value based on thin air. Secretary Mnuchin, echoing the sentiments of President Trump, stated that financial authorities in the U.S. will tighten oversight on the cryptocurrency sector, warning against bigger scrutiny from regulators.
With the formation of the Financial Stability Oversight Council’s Working Group on Digital Assets by the Treasury Department, Secretary Mnuchin also warned that money transmitters and other entities operating within the crypto sector will be governed by agencies like FinCEN, the Securities Exchange Commission (SEC), and the Commodities and Futures Trading Commission (CFTC) at full capacity.
Base on the current price $9,385, Bitcoinis trap between Fibonacci 38.2% and 50% levels. Buyer will be eyeing $8,880/50 to buy in at the fibo 50% level. Likewise seller will want to push price lower towards that level before cashing out from this sold-off.
Risk of lower price target possible because the "double top" reversal formation price adjective is pointing at some where $7,500/$7,300.