- Bitcoin goes below $7,400, critical $7,000 is within reach.
- Justices Department wants to weed out bad actors from crypto market.
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
BEST BROKERS TO TRADE CRYPTO
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.