- Bitcoin closed below $9,614 on Tuesday, confirming a bearish reversal on the daily chart. The invalidation of bullish higher-lows pattern is backed by bearish developments on the short-term charts.
- Prices risk falling to $9,097 (May 30 high) in the next 24 hours. A close below that would expose the 100-day moving average line, currently located near $8,100.
- A key indicator is reporting oversold conditions as per the 4-hour chart, so a minor bounce before any drop below $9,097 cannot be ruled out.
- The long-term outlook will remain bullish as long as BTC is holding above the 200-day moving average line.
Bitcoin logged one of the biggest daily price losses of the year on Tuesday, confirming a short-term bullish-to-bearish trend change in the process.
The world’s biggest cryptocurrency by market value closed (UTC) at $9,412.81 on Bitstamp, down 13.25 percent from the daily opening price of $10,848. That’s the second-largest single-day drop of 2019, the first being the 13.67 percent price slide observed on June 27.
With the drop and the resulting UTC close below the July 2 low of $9,614, BTC has invalidated the most basic of all bullish patterns – the series of higher lows on the daily chart.
Media outlets have associated the recent drop with the growing calls for regulation of Facebook’s Libra project and cryptocurrencies in general.
For instance, Facebook’s plan came under attack at a U.S. hearing on Tuesday, with senators calling the company delusional and untrustworthy and questioning the social media giant on how it was planning to prevent money laundering. And, a week ago, President Donald Trump called for banking regulation on bitcoin and Facebook’s Libra.