The price of bitcoin (BTC) has fallen to its lowest level in the last six months, breaking the key support of $7,000 and touching the value of $6,630 this morning. This is a price collapse of about 22% in November alone.
The reasons for this response from the crypto market seem to be linked to the latest statements from China.
After Friday, also today, the People’s Bank of China (PBoC) wanted to reiterate its message against the operators of the crypto world in its territory, increasing controls and regulation of the sector.
Moreover, the intimidation to amend or eliminate activities involving crypto has been specifically extended also to ICOs, IEOs and STOs, and to unspecified “financial institutions” that make illegal sales of tokens.
The causes of the drop in the price of bitcoin
Another possible cause of this continued bearish sentiment could also be attributed to the actions of a few but powerful players, such as the famous bitcoin whales who are forcing the price to fall so that they can stock up on BTC before next year’s halving.
In this scenario, some famous traders have expressed their comments and forecasts.
Tone Vays, a trader and derivatives analyst, claims to have actually made this prediction 6 months ago, when the price of BTC was virtually the same, albeit in an upward trend. According to Vays, the price of BTC should go down to $4,500.
6 Months ago at #Consensus2019, @cryptomanran & I bet on #Bitcoin pulling back to $4,500. Price of $BTC was about the same but trending up, now it's trending down.
I'm just as confident today as I was then, 6 months to go!
Full Video (comments are funny): https://t.co/z1STRhnp4e pic.twitter.com/GSosMyP3NW
— Tone Vays [Vegas – Unconfiscatable.com] (@ToneVays) November 24, 2019
According to Cole Garner‘s analysis, however, it seems that the weekly closing of the BTC price should not fall below $6,400.
Confluence forming around the $6400 area as $BTC's highest probability bottom.
– Logarithmic channel bottom
– Volume point of control for the last two years
– @filbfilb's estimated mining production cost floor
I don't expect to see a weekly close below that. pic.twitter.com/KfwdcjgIqW
— Cole Garner (@ColeGarnerBTC) November 23, 2019
While The Crypto Dog bets that the support can go down to $6,200 and that afterwards there could be a “handsome squeeze shortly”.
$BTC sliced thru POC and dropped another 15%.
I haven't been trading much this past week while traveling but I think it's time to start looking for longs again. Thick support down to $6200, I think we see a handsome squeeze shortly.
Where are your bids? pic.twitter.com/b7WZH1egwS
— The Crypto Dog📈 (@TheCryptoDog) November 25, 2019
A trader from PDC Academy, which organises courses to learn everything about the crypto and blockchain world, explained to The Cryptonomist:
“We saw a parabolic movement of bitcoin in the second quarter of the year and like any exponential movement, it must be reabsorbed to a large extent to allow a healthy growth of the asset. This morning Bitcoin tested the $6500 zone, showing the presence of large buyers given the past psychological level that kicked off the downturn, bringing the asset down to about $3000. On November 23rd we highlighted the areas to be monitored for a possible short-term reversal, positioning ourselves for a short-term long in the 7k zone that allowed us to close with a small profit, and avoiding for a while the second zone of attention. The asset closed the weekend below the weekly lows around $7450, once the day closed, the price very impulsively went to $6500. The fact that it has recovered more than $800 in a few hours is not a sign of upward recovery, as it is necessary to wait for a daily confirmation and also the monthly confirmation that will take place in a few days. In any case, we are waiting for the indicated zone and if there is a bullish reversal it does not worry us because we prefer to be sure of the trend rather than placing orders in disparate areas of the chart: better to lose a small percentage of profit against a certainty of the underlying trend”.
Are traders still earning on the price of bitcoin?
Generally speaking, the price of bitcoin BTC is still substantially up in 2019 compared to the end of last year when the value was $3.674. After increasing from April to June, when it rose above $13,000, it then lost momentum and gradually declined.
After the fall in September, in fact, the price of bitcoin had risen by 32.87% on October 26th. Also in that case, the increase (from $7,393 to $9,819.92) was credited to the Chinese President’s statement of his intention to affirm China as an innovative country in the blockchain world.