December Bitcoin Low is Breached!

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December bitcoin low is breached!

Well, it looks like I was wrong to call the current dip in bitcoin as normal volatility since the December low of $11,000 was breached yesterday night when the price fell to $10,000. That's well below the 50 day moving average (the purple line in the above chart) which has been acting as a floor in recent times so it looks like the weakness is set to continue. If $10,000 is breached as well, then there isn't much chart support until we hit $7,500 - $8,000 or, after that, $6,000. A low of $6,000 would be a fall of about 70% which would definitely qualify as a crash as far as I am concerned! (And there is no reason why it couldn't go lower still). I suspect that, if the price did drop that far, it would take some time to recover due to the panicking effect this would have on all the new speculators who jumped in after bitcoin went mainstream when the price first crossed $10,000.
The FTSE has continued to rise nicely after its breakout, but I think it might pull back slightly before really taking off as it seems to be running out of steam now. A short dip back to support at 7,600 would seem reasonable.