Bitcoin Loses Bullish Momentum Following BitMEX Probe By the CFTC and FBI

Bitcoin (BTC) continues to react negatively to yesterday’s unexpected news, after the United States Commodity and Futures Commission (CFTC) and the Federal Bureau of Investigation (FBI) took legal action against top Bitcoin derivatives exchange, BitMEX.

About $18 billion has been withdrawn for the global cryptocurrency market since the news broke, and over $20 million worth of long positions on BitMEX has been liquidated. 

Also, the decline was further fueled by the recent development with President Trump, following a recent announcement that the president has tested positive for the Coronavirus disease. 

However, the benchmark cryptocurrency has put up a good fight and has held its ground above the $10,000 level, despite the numerous bearish catalysts. 

Key BTC Levels to Watch in the Near-Term

Coincidentally, yesterday’s steep decline was in tandem with a bearish double top pattern on our 4-hour chart, after BTC failed to claim the $10,900 resistance for the second time this week. 

This is believed to have corroborated the bearish sentiment in the market, which likely triggered a panic sell-off. However, BTC has managed to hold above the $10,350 support, as weaker traders get purged out of the market. 

At press time, Bitcoin is trading at $10,530, with bulls on alert to defend this area and take BTC back into the $10,800-600 pivot zone.

If bulls fail to hold firmly in the meantime, we could see an acceleration towards the $10,000 support again. Subsequently, bears will be keen on sending it to close the long unfilled CME gap around $9,660.  

Total market capital: $335 billion

Bitcoin market capital: $194 billion

Bitcoin dominance: 57.9%

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