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Bitcoin extends its collapse – Bloomberg

Bitcoin extended its losses, taking its fall from four sessions to nearly 20 percent, as questions arise over whether the world's largest cryptocurrency was tampered with during last year's record increase.

After raising more than 1,400 percent in 2017 amid an Frenzy digital asset investor, Bitcoin has dropped almost 70 percent since its record high of $ 19,511 set in December. The digital currency has closed below its 50, 100 and 200 day moving averages over the past 16 days, the longest stretch below support levels this year.

"Things have changed for Bitcoin and the cryptographic space," said Craig Erlam, senior market analyst at the e-commerce firm Oanda Corp. in London. "There does not seem to be much hype or positive news, every time we receive negative news now, after a period of consolidation, we do not see that there is a bullish sentiment to back it up, it's almost as if people expect to sell it."

The virtual currency has had difficulties to reverse a massive sale that coincides with the negative news, more recently a study of the possible price manipulation using the Tether currency. Bloomberg News reported in May that the Department of Justice opened a criminal investigation into illegal business practices that can manipulate the price of Bitcoin and other cryptocurrencies.

Tether, one of the best-selling cryptocurrencies, shows a pattern of being spent on Bitcoin at crucial moments, helping to drive the world's first digital asset to a record price in December, according to research by a University professor at Texas known for marking suspicious activity in the VIX benchmark.

Read more: Professor Who Rang VIX Alarm says that Tether was used to drive Bitcoin

Questions about Tether and Bitfinex have affected the world of cryptocurrencies since last year when Bitfinex lost relationships banking and continued to operate. The Commodity Futures Trading Commission of the United States quoted both companies in December, looking for evidence that Tether is backed by a reserve of US dollars. UU., As he states. Tether and Bitfinex have not been accused of irregularities.

In other technical measures, Bitcoin's relative strength index has fallen below 30, a level often used in stocks and other asset classes as an oversold indicator. It usually increases, falling back above 30, in a matter of days, according to a five-year analysis.

Many of Bitcoin's closest pairs have also fallen. Ethereum, currency No. 2 for market value, and Ripple No. 3 have fallen more than 20 percent in the last four days.

"It seems that all the cryptographic space is taking the hit now," Erlam said. "For Bitcoin, $ 6,000 seems to be a support level now.If I'm a bassist, I'm desperate to see it break at less than $ 6,000."

– With the help of Matt Robinson and Matthew Leising

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