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Get the best parts of DailyFX.com in the new DailyFX App Fundamental analysis and financial markets. – Japanese FSA announcement knocks market sentiment.

– Chart levels have proved reliable to date. To see how retail traders are currently positioned in cryptocurrencies and what it means for the market looking forward, download the IG Client Sentimentpage.

Bitcoin traded at a new seven-month low of $5,769 on Sunday as sellers continued to dominate. The BTC price has picked back up to currently trade around $6,150, but the seven-month low at $5,649 remains in sight and is likely to be tested again on the short-term.

If this level is broken convincingly, prices are likely to dip below $5,000 with the September 15 low at $2,970 the eventual target. The latest sell-off was sparked by news that the Japanese Financial Services Agency (FSA) demanded that six domestic cryptocurrency exchanges to strengthen money laundering controls and internal accounting. Read more from dailyfx.com…

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