Cryptocurrencies fell sharply on Wednesday to a nine-month low as concerns are growing that the broader adoption of cryptocurrencies will take longer than expected. Bitcoin dropped over 9% from yesterday and is currently trading around the $6425/ coin level. We also saw the alt-coins follow suite as Ethereum, Ripple and Litecoin also fell lower.

The selloff was sparked by reports that Goldman Sachs was scraping plans of setting up a cryptocurrency trading desk and that ShapeShift, a trading platform will be asking for personal information from its users. As we all know anonymity is the main attraction in the Crypto space and taking this away might deter customers who value their anonymity.

In this note you will find my technical chart and recommendations:

Looking at the chart of Bitcoin

Looking at the chart we can see the selloff from yesterday (highlighted in grey) and breaking lower from the $6879 price level. The price action is currently trading below the 50-day simple moving average (SMA) which supports the downward movement. We might see the selloff continue in the short term lower to the support level of $5754 which might be a good opportunity for buyers to enter the market.

 Chart Source: MetaTrader 5

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