Bitcoin extending the decline, Stephen Innes from Oanda says $1,000 is not out of the question
|- BTC/USD is down 12% on a daily basis, stays oversold.
- Stephen Innes from Oanda blames regulators.
Bitcoin bulls lived through another day of horror as the leading cryptocurrency smashed $5,000 support and dropped as low as $0,4684 on Monday. Currently, it is hovering around $4,800 handle, down nearly 12 in recent 24 hours. The coin needs to get at least above $5,000 to mitigate the short-term bearish pressure and repair strongly oversold market conditions, though the recovery momentum is still weak to hope for an extended upside movement.
According to Stephen Innes from Oanda, further declines are likely amid new regulatory hurdles.
“I remain incredibly bearish on BTC with the $1,000 level looking as likely as $10,000. But this is from a longstanding and unwavering view that regulators and the banking system will continue to push back against the rise of virtual markets, and will undoubtedly burst crypto’s balloon as the $5,000 cliff edge is approaching fast,” the expert explained.
Bitcoin's technical picture
A sustainable movement under $5,000 looks gloomy, as there is very little in terms of technical support levels below the current price. It means that the way to $4,000 is the path of least resistance. However, the Relative Strength Index (daily chart) is turning to the North, which may signal an upcoming correction. Moreover, Bitcoin is strongly oversold now, so the recovery looks likely.
$5,000 remains the key hurdle that needs to be taken out as soon as possible with the next aim at $5,558 (Monday's open level).
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