Bitcoin closed last week on the decline, recording its second weekly loss. Will it continue to decline?

Bitcoin has been volatile over the past few days, falling below the $9,800 psychological support level to $9,500 and then hitting a one-week low at $9,118, and is currently seeing corrective moves to rise again in the $9,500 range.

The price could either rise above $9,700 and $9,800 or fall sharply to trade at $9,000.

During the week's trading, bitcoin's losses amounted to about 7%, recording the second consecutive weekly decline, with renewed concerns about regulatory operations towards cryptocurrencies, bringing the monthly losses of the largest cryptocurrency in the world to 20%.

Bitcoin

Trading volumes also fell significantly, reaching nearly $14 billion in 24 hours, down two-thirds from the peak of trading activity in June.

The downtrend is back in control of Bitcoin

The recent price action indicates that bearish moves are taking full control of the cryptocurrency and without a major push from supportive news to the digital market, Bitcoin could face an incredibly weak weekly close that will spark a lot of turmoil in the coming weeks and months.

In 2019, bitcoin prices rose to a high of 13,393 dollars, which is enough to boost optimism in the first six months, but now bitcoin is at a crossroads again, and there are a lot of questions about the highs that bitcoin will reach during this year.

These wide and successive losses come due to the increasing fears that some countries will impose a ban on cryptocurrency exchanges, especially after the harsh criticism received by the bitcoin and cryptocurrencies by many regulators and politicians in the world, especially in the United States, led by the US President “Donald Trump” and the Minister of Foreign Affairs. US Treasury "Steven Mnuchin" and some members of Congress.

This sharp attack by the United States returns after Facebook announced the launch of its proposed Libra currencies, which made Congress hold hearings to discuss the Facebook digital project, and many demanded that Facebook stop developing its currency before taking appropriate measures to protect global financial policy.

The US Treasury Secretary renewed his attack on Bitcoin once again, saying that after 5 or 6 years he will not be talking about Bitcoin as Treasury Secretary and he will have other priorities.

Bitcoin is waiting for new catalysts that support investment demand rates to buy Bitcoin and push prices higher to reach again above the $10,000 level, and currently the Bitcoin price maintains a support level of $9,300, however, the price is still at risk of a new decline if it fails to break the resistance at $9,700 and 9,800 dollar.

Mohamed Abdel Khaleq
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