After rising $3,000 from the ashes last week, bitcoin has lost half of those gains as it returns to recent support levels.
The price of bitcoin has fallen to $9,000, down nearly 4 percent in the past 24 hours. After hitting a recent high of $ 10,000 last week, it inched down to the $9,000 mark.
The $9,000 level has been a key support area throughout bitcoin's mid-2019 surge. Every time the price of bitcoin fell to the $9,000-$9,500 level during bitcoin's consolidation from July to September this year, bitcoin continued to bounce higher, overtaking $10,000. However, the $9,000 support finally broke on September 24-possibly due to a lacklustre run of Bakkt futures.
Much of bitcoin's recent rally was related to Chinese President XI Jinping's speech on the merits of blockchain technology, although XI did not mention bitcoin itself. This was followed by a huge increase in search volume for blockchain, a surge in stock prices for blockchain-related companies, and a local government in China offering $ 150 million in subsidies to blockchain companies. While this is generally considered good for the industry, it may not mean much for bitcoin itself, which was still on a downtrend until this news broke. And so far, since the sudden surge upwards, it has continued to decline.