BTCUSD continues to trade in a bearish mode since Friday, after another failed attempt to break above the $9,000 mark. The digital currency is trading with a strong negative bias on Monday, losing over 6% on the day.
The recent weakness in the market was mainly due to two major factors: the announced ads ban by Google, as well as the story between the Japanese Financial Service Authority and Binance exchange. But following the emotions, technical factors got into the game and now they set the tone for bitcoin, along with the ever-present speculative factor. The local bearishness may well send the virtual currency to one-week lows around $7,200 or even lower as the price is testing the $8,000 psychological support, signaling further losses ahead.
As we remain more bullish over bitcoin’s longer-term prospects, another sell-off is likely just a new opportunity for opening long positions going forward. As soon as the current bearishness is exhausted, the speculators will likely start to look for fresh entry points, assuming that there are no any negative steps, reports and news in the industry in the nearest future. The key to the upside is the above mentioned barrier at $9,000. A break above could open the way to $12,000.