Cryptocurrency & Blockchain Business
John Isige

Bitcoin price analysis: BTC/USD slips over 6%, South Korea’s Upbit investigation to blame?

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Bitcoin price descended sharply during the Asian trading hours on Friday, diving below the $9,000. BTC/USD was unstoppable at $8,900 and $8,800 levels, although the cryptocurrency seems to be stabilizing above $8,700. The entire crypto market is nursing losses while the only news that can be linked to the slide is the investigation involving South Korea’s largest cryptocurrency exchange, Upbit.

The local police and several other investigators are digging into the exchange following allegations that it is faking the balance sheet and in turn deceiving the investors, while nothing about the investigation has been reported to the media, this type of news has in the past impacted the prices negatively.  

Other possible reason for bearish trend today is related to Mt. Gox trustee who has continued to move large sums of Bitcoin despite acknowledgement that such actions contribute to movements in a market that is highly volatile already.

The reports in the market today indicate that four wallets connected to Mt. Gox trustee transferred approximately 2000 BTC each in a period spanning 24 hours, with the total of 8200 BTC. The large amounts of Bitcoin are probably sold on exchanges to facilitate conversion into the local Japanese yen.

Technically, Bitcoin price is testing the immediate support level at $8,700 but is currently supported by the descending trend line on the 1-hour chart. If the bears push the price below this level, BTC/USD could revisit $8,400 as covered by FXStreet editor, Tanya. The indicators are sending mixed signals, for instance, the gap between the moving averages is reducing, while the MACD is at -120 mark on the same chart. The immediate resistance is present $ 8,800, however, $9,000 is a major hurdle to the upside.  

BTC/USD 1-hour chart

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