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Bitcoin price analysis: BTC/USD smashes $7,400 support as US Justices Department investigates Bitcoin price manipulations

  • Bitcoin goes below $7,400, critical $7,000 is within reach.
  • Justices Department wants to weed out bad actors from crypto market.
Bitcoin price analysis: BTC/USD smashes $7,400 support as US Justices Department investigates Bitcoin price manipulations
Tanya AbrosimovaTanya AbrosimovaIndependent Analyst

The rebound was short-lived as cryptocurrency market is in red again. Bitcoin, the most popular digital coin, dropped below $7,400 handle during early European hours and continued to move down forcefully, threatening to take out the next psychological handle at $7,300. 

Meanwhile, Bloomberg reports that Justices Department has opened a criminal probe to investigate possible manipulations with Bitcoin prices. This is just another evidence of regulatory scrutiny and desire to cool-off the red-hot market plagued by misconduct, scammers and bad actors. The investigation is focused on bad practices that might be applied with the aim to manipulate the price, including spoofing, the agency reports.

Bitcoin's technical picture

Looking more broadly, on a daily chart BTC/USD stays firmly below  $7,683 (23.6% Fibo), which puts $7000 handle back in focus. If this critical support is broken, the price will go down to $6,483. On the upside, a return above $8,000 is a must for an extended recovery towards $8,420/50.

BTC/USD, the daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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