Bitcoin – BTCUSD rallied yesterday more than five per cent after the previous week consolidation above $7,000 mark. Bitcoin breached the $7,500 level but as of writing BTCUSD retreated below that resistance. The last week selling pressure mostly attributed to one of the largest Ponzi schemes in China, the PlusToken.
Crypto-Currency Act of 2020
The US is preparing the ‘Crypto-Currency Act of 2020’ draft bill. The aim of this law is to define which Fed agencies will be in charge of regulating cryptocurrencies. The proposed law will also provide a specific classification of crypto assets as crypto-currencies, crypto-securities, and crypto-commodities.
Bitcoin today is 0.24% lower at $7,491, the capitalization now stands at 136.23 billion. The total cryptocurrencies market cap is 197.79 billion.
Read our Best Trading Ideas for 2020.
Bitcoin – BTCUSD Technical Outlook
Bitcoin managed on Sunday to break above the $7,500 and started today stronger hitting the daily high at $7,644 but retreated below the $7,500 mark. Now the short term momentum is positive but needs today to regain the $7,500 level.
Now traders attention shifts to the upside. Immediate resistance for BTCUSD stands at $7,644 the daily high. If the crypto pair breaks above that level the next resistance will be met at $7,783 the 50-day moving average. In case the bulls capture that level, then a move up to the 100-day moving average at $8,255 can’t be ruled out.
Looking south, the first support for BTCUSD will be the daily low at $7,462. Next support region stands at $7,154 the low from yesterday’s session. It looks like bitcoin has established significant support at the $7,000 mark which offered strong bids for many days the previous week and will be the critical level for the short term. In case the BTCUSD breaks below the $7,000 strong support the next barrier stands at $6,630, while the bears will target the $6,400 the low from December 18th session.
Crypto bulls must be patient, a credible break above $7,500 might offer a buying signal but the most conservatives traders need to wait for a break above the 50-day moving average to enter long positions.
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