Bitcoin Hit by Negative News Coverage, Drops to Key Support [Video]

Another day, another drama in the cryptocurrency world. Bitcoin, along with almost all other major altcoins saw massive drops on Wednesday as the crypto market was hit by two negative news coverages. First, Google reported that they’re banning all cryptocurrency and Initial Coin Offering ads. Google is the world's largest online ad provider. But we need to keep in mind that Facebook, the second largest online ad provider, took similar action in January, and the crypto market reacted similarly, bouncing back up shortly after. Banning bad ads might actually help the industry move in the right direction in the long run. But for those who didn’t get distracted by this report, there came the head of global economics and strategy at Allianz Global Investors to put his two cents about Bitcoin, saying that it’s worthless and that the bubble will burst soon. He says Bitcoin "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures. At the time of filming, Bitcoin has dropped 8.50%, down to $8,086 which is a support level from back in February. Since then, BTC/USD surged back up to the $11,500 resistance level, formed a Double Top reversal chart pattern, and today, the pattern is considered completed. More from a technical point, the pair has tested below the Ichimoku cloud with a sharp bearish engulfing. The next support level is at $5,931, a level that was briefly tested on February 6th. Thanks for watching, invest responsibly, and I’ll see you with more updates tomorrow.

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