Bitcoin, a Look at Where it is Going…
Saturday, Bitcoin finished + 1.61% at $6,950 then opened lower at $6,450.25 early Monday overseas.
Currently, Bitcoin is trading at: 6,879.0049,+19.6797 or +0.29% as of 6:37a BST, the market is open.
Saturday’s rise leaving Bitcoin off 17.8% from last Monday’s open through to Saturday’s close. For the Quarter and for those who bought Bitcoin on the back of the December rally, the cryptocurrency was down 63% on the Quarter..
Saturday, an intra-day low $6,794.26 held well above the day’s 1st major support at $6,502.88, Bitcoin finding adequate support at and around the $7,000 psych mark to avoid a more severe slide during the day.
It was the 2nd day running that Bitcoin closed at sub$-7,000 and only the 2nd time since the February sell-off that saw Bitcoin tapped the post-December rally low at $5,920.72.
For the Bitcoin Bulls, the takeaway from the latest sell-down will be the fact that Bitcoin has not fallen to a new post-December rally low, in spite of the latest Bearish trend continuing since the 21 March swing hi at $9,188.1.
The Bulls will consider current price levels as attractive and the optimists will suggest that the eventual rollout of a global regulations will be a positive for the market.
The jury is out on that one, particularly when considering the fact that disclosure requirements will likely lead to a pull out of the market by many.
One thing to consider will be regulatory arbitrage, as with every asset class and regulation, there are jurisdictions that are more welcoming and accommodating than others.
Holding $7,000 was a challenge for Bitcoin at the weekend
For Bitcoin to reverse the Bearish trend, a move through $7,558 is needed to support a run at $8,000. Current market sentiment suggests that such a move is unlikely, as investors continue to hit Sell well before Key resistance marks reached.
Looking at the moves through Friday, 1 might argue that Bitcoin has bottomed out, but with all of the regulatory implementations to come, stemming from the anticipated roll of global regulations by the end of July, what has the markets in this Bearish mode is not going away soon.
Investors must accept the fact that regulations, disclosure and tax laws are on the way.
What I do not expect is a war against the cryptomarket that has been looking to bypass central bank controls on the world’s monetary system/s.
Have a terrific week.
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