- Bitcoin has witnessed intense inflows of selling pressure throughout the past several hours on news of Bithumb’s Korean offices being “raided” by authorities
- Although it remains unclear as to why the raid took place – or why Bitcoin investors should care – it instantly led fear to spread throughout the industry
- This created shockwaves that caused many other digital assets to plunge lower as well, with Ethereum at one point dropping from highs of $480 to lows of $419
- Analysts are noting that, from a technical perspective, bulls still remain in full control of BTC, as it has yet to post a break beneath any crucial levels
It’s starting to feel more like 2017 by the day, with news surrounding Bithumb’s Korean offices being raided by police creating a sense of immense fear amongst Bitcoin investors.
This caused Bitcoin to erase all of the gains that it incurred yesterday and sent the crypto reeling down to lows of $11,300.
At these lows, it was able to find significant support that both slowed its ascent and catalyzed a sharp rebound.
Although this rebound is now stalling, analysts believe that there’s a mounting chance that further upside is imminent in the near-term.
Bitcoin Plunges as Investors Grow Concerned About South Korean Crypto Crackdown
It’s no secret that news about South Korea cracking down on ICOs and other speculative aspects of the crypto market in 2017 and early-2018 helped catalyze multiple strong selloffs.
This type of news-based selling appears to be returning to the market, as news of Bithumb’s offices being raided sent Bitcoin spiraling lower today.
At the time of writing, Bitcoin is trading down just under 4% at its current price of $11,445. This marks a notable decline from recent highs of $12,200 that were set at the peak of yesterday’s upswing.
Analyst: Bulls Still Remain in Control of BTC
Despite the overt weakness that the cryptocurrency is currently expressing, one analyst is noting that bulls still remain in control of Bitcoin.
While speaking about this, he explained that a close above $11,770 at the end of the day would be extremely bullish.
“BTC: Nothing lost for the bulls yet, close above $11770 and I’d expect mega moon. Close significantly below and sells into the $11700 area become very attractive. Lose $11k and it’s macro pullback time, as long as it holds assume we’re gonna go further up.”
Image Courtesy of DonAlt. Chart via TradingView.
Unless bears break the support that exists between $11,000 and $11,300, BTC still remains within its long-held trading range.
Featured image from Unsplash. Charts from TradingView.