Bitcoin continues to depreciate, with the price within striking distance of the $7,000 milestone. The selling pressure has intensified after a break below the $7,200 intermediate support. On Tuesday, the coin is changing hands around $7,100, down 1.4% on the day.
The key reason behind the recent sell-off is a technical one. As the digital currency failed to recover above the $7,600 area, the downtrend has intensified, and now the bears are threatening another psychological mark which, if broken, will send the price to the initial target of $6,800 followed by the $6,500 area, where early-April lows lie.
The additional bearish catalyst for the cryptocurrency market was the report that Bithumb, South Korea’s largest cryptocurrency exchange, decided to block trading in 11 countries in an effort to prevent money launderers using its system. Moreover, as a result of revised internal regulations, foreign users will also have to undergo a stricter verification process.
In the short-term, the BTC/USD pair needs to keep above the $7,000 threshold to prevent additional losses. The initial upside target is now at $7,200. In general, it looks like the coin set for further decline before it attracts buyers.