The price of Bitcoin declined to the lowest level since September 26 after a series of negative news. Yesterday, Wall Street Journal wrote an in-depth article on how the price of Bitcoin is manipulated by bots. This is a major news, especially from a regulatory standpoint. It was even cited by the SEC when it declined to accept the ETF proposals. It was also cited by the Office of New York attorney general. It is also a major news for cryptocurrency users and advocates. This is because manipulation goes against the stated purpose of Bitcoin as a replacement of fiat currencies. To solve this situation, a team of the largest crypto companies have formed a consortium to act as a regulator. However, since it won’t have any legal backing, the organization will likely have no power to enforce.
Another negative headline was that MGT Capital Investments was sued over a pump and dump scheme. This is the firm founded by John McCaffe, one of the most influential cryptocurrency proponents in the world. John founded the eponymous cybersecurity firm. This investigation followed the SEC investigation into the former MGT securities CEO.
The BTC/USD pair declined to a low of 6360. The pair’s price on the hourly chart is trading along the lower band of the Bollinger Bands. This, coupled with the fact that the 28-day EMA is trading on the left side of the shorter-term 14-day EMA is an indication that the pair could continue moving lower. If it does, it will likely test the 6320 level.
