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The news of Facebook relaxing its ban on cryptocurrency advertisements has failed to cheer the crypto markets. This shows that the market participants continue to focus on the negative news while disregarding the positive news.
A study by the research firm Ipsos, conducted for ING Bank B.V found that only 9 percent of the respondents from Europe, Australia and the U.S. own cryptocurrencies. 25 percent said they might buy in the future. The negative sentiment is keeping these new first-time investors at bay who are postponing their purchases.
Blockchain venture capitalist Spencer Bogart believes that there is more pain left in the system. He expects some more selling because the hedge funds that had opened about a year ago are likely to face redemptions in near future.
So, how low can the digital currencies fall? Let’s check the charts.
Though Bitcoin has been trading above the $6,075 levels for the past two days, the failure of the bulls to ensure a strong bounce at this critical support shows weakness. This indicates that the buyers are still not willing to put fresh money at these levels.
The bears will now attempt to break below $6,000 once again. If successful, the digital currency can slide to $5,450 and below that to $5,000.