Bitcoin price analysis: BTC/USD drops below $6,500, bulls are devastated

Bitcoin is navigating a sea of red. The coin has lost over 12% on recent 12 hours and dropped below $6,500 handle and touched $6,272 low for the first time in two weeks. The total cryptocurrency market lost over %35B of its value as its capitalization slipped to $203B. All major altcoins followed the lead and lost 15%-20% in the same period.

Goldman's decision to put on hold its plans to launch cryptocurrency trading desk due to regulatory uncertainty was a significant driver behind the setback on the market.

 “We think of bear markets as being primarily about price, but for traders lower trading volumes and liquidity might be an even bigger issue. So, I view the Goldman announcement as an indication of the poor near-term prospects of the crypto trading funds in particular,” Eiland Glover, CEO of stablecoin Kowal, commented. 

The announcement came as another blow after SEC's decision to reject Bitcoin ETF application, which may be interpreted as an evidence that the industry is not ready for institutional adoption yet.

Bitcoin's technical picture

From the longer point of view, BTC/USD is moving within a triangle pattern with the lower line at $6,000. This level is likely to stop the carnage and initiate an upside correction; however, once it is broken, the price might enter a phase of uncontrollable free fall. On the upside, Bitcoin needs to return to the area above $7,000 to get hope for resumed recovery.

BTC/USD, the daily chart