Bitcoin – BTC continues lower for the fifth consecutive trading session after the rejection at the $7,700 level. The bitcoin on its recovery from recent lows failed to break above the 50-day moving average and sellers took the upper hand and pressured the crypto pair at the consolidation zone around $7,100.
The headlines around crypto markets came from the U.S. this week as the US is working on the ‘Crypto-Currency Act of 2020’. The new law will define which Fed agencies will be in charge of regulating the cryptocurrency markets. The proposed legislation will also provide a specific classification of crypto assets as crypto-currencies, crypto-securities, and crypto-commodities.
Bitcoin today is 0.25% lower at $7,170.52, the market cap stands at 130.64 billion. The 100 major cryptocurrencies market cap is 190.10 billion.
Bitcoin trades above the support at $7,120 and consolidates as the sellers are in control of the short term trend. The positive momentum after the rebound from the lows at 6,400 has been cancelled now. A move to lower levels is possible now.
The initial support stands at $7,159 the daily low. Next level to watch is the strong support at 7,000 round figure which absorbed the last weeks the selling pressure. In case BTCUSD breaks below that level the next support level is the $6,600 the low from December 17th, which guards the seven-month lows at $6,420.
On the flip side, first resistance for bitcoin stands at $7,229.78 the daily high. If BTCUSD breaks above that intraday resistance level, the next target is the high from yesterday’s session at $7,430. Bulls need a break above the 50-day moving average at 7,610 to cancel the recent bearish momentum and initiate a bullish leg.