Bitcoin price analysis: BTC/USD plummets over 6% on Friday, could South Korea’s Upbit investigation be the cause of the fall?
|- Upbit is being investigated for faking its balance sheet.
- Bitcoin price is immediately supported at $8,700, next target on the lower side is $8,400.
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 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.
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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