Bitcoin Falls Below 200 SMA to 5 Week Low

Bitcoin Daily Chart

Bitcoin hasn’t had a day in which price closed higher since March 5th. On Thursday price is trading below the ‘line in the sand’ 200 period simple moving average on the daily chart, adding to the bearish technical scenario for the cryptocurrency.

Bitcoin is now trading at the lowest level in over a month. The prior low of 5,845 stands out as potential support to the downside. The 11,700 level, where price peaked multiple times, forms resistance above.

RSI is curved downward reflecting continued downward momentum.

Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalisation after Bitcoin, fell sharply to under $600.

The negative sentiment in crypto has been fueled by several major news stories. Last week the US Securities and Exchange Commission (SEC) warned investors that cryptocurrency exchanges were not regulated. The SEC statement triggered fears that increased regulation could restrict trading in digital assets.

On Wednesday Google said it would ban advertisements for cryptocurrencies and initial coin offerings (ICO’s) starting in June. The news follows Facebook’s announcement in January that it would ban ads on binary options, initial coin offerings and cryptocurrency.