BTCUSD Daily Chart
Bitcoin fell sharply on Wednesday after the Securities and Exchange Commission (SEC ) stated that online platforms trading digital assets that are considered securities need to register with the agency.
The news pushed Bitcoin below the key psychological $10,000 level, marking a 50% drop from its all time high.
Bitcoin is the largest cryptocurrency by market capitalization and the SEC statement triggered fears that increased regulation could restrict trading in the digital asset.
Support lies below at the prior low of 6,720 and beneath that around the 200 period simple moving average. To the upside the 50% retracement level of the recent downmove at 12,539 represents key resistance.
The other leading cryptocurrencies, Etherium (ETCUSD) and Litecoin (LTCUSD) were also hit by the news.