Bitcoin remains under pressure and struggles to find demand amid further negative developments in the cryptocurrency market. The price briefly slipped below the $10,000 handle on Tuesday and tried to test this key support earlier today. The digital currency reached fresh two-week lows at $9,698 where attracted some demand and is trying to move back into positive territory.
Bitcoin faced another blow yesterday, when the tech giant Facebook announced a ban on advertisements for cryptocurrency and ICO citing the fact that such products "are frequently associated with misleading or deceptive promotional practices." Besides, CFTC subpoenaed cryptocurrency platforms Bitfinex and Tether as part of its increasing scrutiny of digital assets over the past few months. Among other bad news was SEC’s decision to halt AriseBank’s “illegal” ICO. The regulator also warned celebrities about endorsing ICOs.
It is very hard for bitcoin to attract sustainable demand amid such a negative background and pressure on the international level. Nevertheless, considering the scale and frequency of such bad news, the price feels relatively steady yet. It may signal attempts to find a bottom, as buyers emerge every time the digital currency sets up for a leg down under the $10,000 mark, which is still key on the downside. A decisive break under this barrier could trigger a more aggressive sell-off.
By Helen Rush
Senior Analyst at Capital Markets