Another day, another drama in the cryptocurrency world. Bitcoin, along with almost all other major altcoins saw massive drops on Wednesday as the crypto market was hit by two negative news coverages. One from Google, and one from a major global investing firm.
Google Bans Crypto Ads
First, Google (NASDAQ:GOOGL) reported that they’re banning all cryptocurrency and Initial Coin Offering ads. Google is the world's largest online ad provider. But we need to keep in mind that Facebook, the second largest online ad provider, took similar action in January, and the crypto market reacted similarly, bouncing back up shortly after. Banning bad ads might actually help the industry move in the right direction in the long run.
Allianz Says Bitcoin is Worthless
For those cryptocurrency investors who didn’t get distracted by this report, there came the head of global economics and strategy at Allianz Global Investors to put his two cents about Bitcoin. He said that Bitcoin worthless and that the bubble will burst soon. He believes the cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures.
Bitcoin Price Action on the News
At the time of writing, Bitcoin has dropped 8.50%, down to $8,086 which is a support level from back in February. Since then, BTC/USD surged back up to the $11,500 resistance level, formed a Double Top reversal chart pattern. Today, the pattern is considered completed.
More from a technical point, the pair confirmed below the daily Ichimoku cloud early during Thursday's Asian trading session, following a sharp bearish engulfing chart pattern. The future cloud is sending mixed signals as it is moving down with a bullish sentiment.
The next support level is at $5,931, a level that was briefly tested on February 6th.
*This article was originally published here