Bitcoin price analysis: BTC/USD down 3.5% on the day; speculations on Binance haunted by JFSA create FUD

Bitcoin is tumbling down the third day in a row. The sell-off was triggered by a bunch of technical factors and intensified by speculations about Japanese regulator haunting the biggest cryptocurrency exchange by trading volume. The exchange in question is Binance that was originally established in China but had to move to Hong Kong to escape aggressive regulation from the Chinese authorities. 

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The story was initially published by Asia.Nikkei, but Binance CEO Changpeng Zhao denied the charges against the company and accused the news outlet in irresponsible journalism.

"Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them," he wrote in his Twitter account.

Later he had to admit that Binance had received the notice from the regulator.

"We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately and will find a solution. Protecting user interests is our top priority."

Whatever the end of the story, the harm to Bitcoin and other digital assets is already done. We are going to see more sell-off before the dust settles.

Bitcoin price technical picture

In the broader scheme of things, Bitcoin is moving away from the upper line of Andrew's pitchfork, locked in a downside channel. The critical support is produced by 61/8% Fibonacci retracement at $8,000. Once it is broken, the focus will shift onto March 18 low at $7,318. On the upside, BTC/USD bulls have to take out $8,800 resistance before they get a chance to retest $9,200 with 200-DMA placed around that level.

BTC/USD, the daily chart