BTC/USD Update: The crypto market had a rough day on Tuesday, as almost all major cryptocurrencies in top 100 dropped in value with the exception of a few. Bitcoin, the king of all cryptos, saw a 4.30% decline which helped it break below the daily Ichimoku cloud when traded versus the USD, approaching the $8,000 mark.
What's Going On?
The slowdown came following concerns over increased regulation in China.
In a report issued by China’s Ministry of Industry and Information Technology, the government reiterated its position against “certain risks that cannot be ignored” when it comes to ICOs, pyramid schemes, and fraudulent behavior.
The report compares the current cryptocurrency climate to the early days of the internet, advising the public against “excessive speculation” and “false propaganda.”
We tend to agree with that.
Happy Bitcoin Pizza Day Regardless!
Despite the slowdown, the crypto crowd celebrated the 8th annual Bitcoin Pizza Day. On May 22, 2010, a Florida-based programmer and early cryptocurrency enthusiast paid 10,000 bitcoins to order two pizzas from his local Papa John’s restaurant.
The purchase is believed to have been the first time that bitcoin was used in a real-world transaction. Today, those coins are worth nearly $82 million. Those pizzas had better have given him a lasting taste.
BTC/USD Price Action
Back to technical analysis, BTC/USD has confirmed a break below the daily Ichimoku cloud, a move which may have opened doors to further drops towards key levels around $6,700 and $5,200.
I’ve been saying for a while that before the next major bullish sentiment starts, we could very well see Bitcoin reaching as low as $5,000.
As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don't forget to complete your risk management due-diligence before developing your investment strategy.
*This article was originally published here.