Bitcoin Crashes Completely Wiping Out the October Rally

Bitcoin (BTC) finally dropped all the way down to the $7.4Ks in minutes as anticipated in our previous analysis if the key $7.8K level did not hold.

Cryptocurrency market daily performance

Cryptocurrency market daily performance. Source: Coin360

Over the past week, BTC/USD has faced a slow grind down to the $8,000 price level. Now, Bitcoin also broke below its 0.786 Fibonacci retracement level as well — its last major level before a confirmed full retrace of the Oct. 25 rally to $10,500.

After a short bounce, Bitcoin has bounced back to around $7,600 at press time.

“China bans Bitcoin” FUD works again

As Cointelegraph reported, rumors of Chinese authorities raiding Binance’s Shanghai offices were likely also responsible for the drop. However, the exchange said that they had not received a notice from Chinese authorities, which required Binance to detail its activities.

Specifically, a Binance spokesperson denied the rumors, saying:

“Binance has no fixed offices in Shanghai or China, so it makes no sense that police raided on any offices and shut them down. […] There has been a recent spike in the number of negative articles and activities against Binance in China. We wouldn’t delve too much into what causes this, because we prefer to continue BUIDLing our solutions.”

Bitcoin price fully retraces October rally

Nevertheless, after several days of choppy price action, BTC/USD finally posted a decisive drop below $8,000 falling under its 0.786 Fibonacci retracement level at $7,870 and plummeting all the way down to $7,390.

This was the level of consolidation prior to…

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