Bitcoin (BTC) has suffered an unexpected drop by close to $3,000 over the past few hours. We have compiled a few factors we think precipitated this crash.
1- OKEx resumed facilitating withdrawals today, after an extended period of locking up investors’ funds on the exchange. This halt happened after the founder of the company was arrested in October. Investors on OKEx quickly jumped on the chance to cash out on their profits as soon as they saw the opportunity, given how much the unduly-withheld funds have accrued over the weeks.
2- Earlier today, it got reported that the CEO of the US-based Coinbase, Brian Armstrong, expressed his fears over the rumored regulations proposed by the country’s Treasury Secretary. The proposed law is said to be very harmful to the crypto industry, considering it infringes on one thing cryptocurrencies are fabled for; privacy.
3- Our third proposition is that Bitcoin has gone significantly long without any price corrections. A price correction had been anticipated for a while, and this one coincided well with the current fundamental backdrop.
4- The $20,000 all-time high is a firm technical and psychological resistance. Just like how drawn out the fight to secure the $10,000 psychological line was, speculators expect the $20k mark to put up a good fight.
5- Our final reason for the recent BTC crash is that it got ignited by heavy FOMO buying. Naturally, when the fear and greed scale of Bitcoin gets too high, a refresh (which triggers a crash) is expected.
Key BTC Levels to Monitor — November 26
The recent BTC crash was firmly caught by the $16,200 support, signifying a possible end to the decline. That said, the benchmark cryptocurrency is likely to facilitate a steady ascent back into our ascending channel and the overall uptrend in the coming days and weeks.
Meanwhile, our key resistance levels are at $17,000, $17,635, and $18,000. While our key support levels are at $16,200, $16,000, and $15,500.
Total market capital: $409 billion
Bitcoin market capital: $307 billion
Bitcoin dominance: 62.6%
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