Bitcoin Crashes? It’s game on between Bitcoin and major banks and credit card issuers, just as Super Bowl Sunday starts in the US. Bitcoin saw another round of bearish movements on Sunday, attempting to reach our key support level of $7,460. Could this be because the banks are scared of losing power to the digital assets?
Bitcoin Crashes as Ban Expands Across Credit Cards
A growing number of big U.S. credit-card issuers announced they’ll be declining crypto purchases. JPMorgan Chase & Co (NYSE:JPM)., Bank of America Corp (NYSE:BAC). and Citigroup Inc (NYSE:C). said they’re stopping purchases of Bitcoin and other cryptocurrencies on their credit cards. They are mainly saying they are banning cryptocurrencies because of the volatility and risk involved.
Is it because they're scared?
One might wonder, are they doing so because they are scared of losing power to the decentralized world of blockchain? Or that they didn't get in on it early? Or the fact that they can't control and make money off of the cryptocurrencies the way they can with other assets?
Don't get me wrong. I'm not saying the cryptocurrency prices are not volatile. Nor am I saying that they do not involve risk, or that there’s not a real chance that Bitcoin crashes along with other cryptocurrencies before things start to move back up. Of course, there is.
In fact, this has been the main theme of our investment strategies.
However, there’s something to be said about big corporations suddenly deciding to boycott, or perhaps even manipulate the prices by their announcements.
Creating this type of fear using the media always works, especially for newbie investors. Just last week, Chase had said it was allowing customers to buy cryptocurrencies with its credit cards.
Bitcoin Price Action - BTC/USD
BTC/USD has continued rolling down below the daily Ichimoku cloud since mid-January. It has successfully broken below key supports, as well as 50% and 61% Fibonacci retracement levels. It is now attempting to reach the next support level of $7,460 which falls right above the 76% Fibonacci level.
The future Ichimoku cloud remains bearish. However, bearish signals from all the other Ichimoku moving averages such as the Chiko-span, Tenkan, and Kijun lines have already expired. The next support level for BTC/USD is below $6,000 at $5,970.
Bitcoin's price has more than halved in value from the all-time high levels above $19,000 from back in mid-December. It had rallied 2,000 percent in just 12 months to reach that record.
Other cryptocurrencies have also fallen in the last few weeks.
On the bright side, more and more brokers and exchanges are adding cryptocurrencies to their platform. So I'd say, it's not game over yet. Invest responsibly, though :)
*This article was originally published here