Bitcoin price rebounds from Asian session losses as the number one attempts to recover the sharp two day losses. Bitcoin rejected for one more time at the 10,000 mark as we have discussed in our previous analysis “Bitcoin Price Upside Capped At $10,000” as the 10,000 proves a very strong resistance.
Traders dumped bitcoin below the 10,000 mark, while the rejection accelerated the sell-off and on Wednesday the price after a flash crush dropped down to 9,000. Yesterday, bitcoin price breached below the 9,000 and the pullback stalled at 8,800. It is clear for now that Bitcoin bulls need more steam to break above the 10,000 area.
Russia Plans To Ban Cryptocurrencies?
Some traders believe that the recent pressure in bitcoin comes from news reports that the Russian parliament is considering banning any cryptocurrency usage inside Russia by introducing new legislation. If the law passes then, the local digital asset investors could face fines and even jail time. The law will ban any bitcoin usage, from owning an exchange or bitcoin mining operations to small transactions such as buying and selling bitcoins with a bank account. The draft law suggests fines from 500,000 rubles to two million rubles.
Bitcoin price is 0.77% higher at $9,132 while during the Asian session BTCUSD hit the low at 8,924. In our daily chart now has formed a strong resistance around the 10,000 mark and only a peak in volumes and a strong move can break it. Even the technical picture remains bullish, traders should be cautious in the case bitcoin drops again below the 9,000 mark.
On the downside, initial support for BTCUSD stands at $8,924 the daily low. The next level to watch for bitcoin in case of more selling pressure is at $8,791 the low from May 21 trading session. Next support zone stands at $8,511 the low from May 12.
On the other hand, the first resistance stands at $9,198 the daily top. The next strong resistance for bitcoin will be met at $9,576 the high from yesterday trading session. In case of a move higher, then the bulls will be looking for an extension above 9,840 the high from May 20.