[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] A visual representation of the digital Cryptocurrency, Bitcoin.
Photo by Dan Kitwood/Getty Images One of the challenges with trading, and to a degree investing in, Bitcoin and other cryptocurrencies is that they trade 24 hours a day, 7 days a week. Since they are so volatile trying to keep abreast on what is impacting their price is extremely difficult and probably very stressful.
Two reasons for the drop last week were concerns that the Indian government could ban cryptocurrency trading (but there is some dispute to this) and Facebook banning ads promoting cryptocurrencies and Initial Coin Offerings, or ICOs. Regulatory impacts are one of the 12 reasons I believe Bitcoin could fall to $1,000 or below.
Another one is third parties changing their mind about supporting it. While the third party I wrote about was Visa any large organization, such as Facebook, pulling back support could have a large negative impact.
Broken key technical support levels Bitcoin had previously found support at its 50 day moving average three times in the past year (the blue line on the chart below). It blew past the 50 day moving average in mid-January and then the 100 day moving average of $9,219 on Thursday (the red line). Read more from forbes.com…
thumbnail courtesy of forbes.com