BTC/USD trading range has tightened severely lately, with the pair is stuck between $7,800 and $10,000 since mid-April. But on Wednesday, the coin came closer to a major bearish breakout as the price dived under the critical $8,000 mark for the first time since April 19, down 2.1% on the day.
One of the reasons behind another leg lower is market nervousness about tighter regulation. In particular, the Chinese Ministry of Industry and Information Technology highlighted in its report some risks around ICOs that can’t be ignored. The statement fuelled concerns over further regulatory crackdown, though on the whole, the market has become more immune to the news and signals from this front than before.
The digital currency needs to regain the $8,000 mark to avoid more pain in the short term. Despite the support area at $7,800 looks quite strong, the coin got more vulnerable after a break below the psychological level, and the risk of losing the important figure that is on the way to $7,000 has increased. It looks like bitcoin has attracted some buyers around the lows, but the recovery impetus looks too weak so far to call a bottom.