Bitcoin price correction accelerated yesterday after BTCUSD breached below the 50-day moving average. That move added more crypto traders to the selling side pushing the price below the 200-day moving average and only a late-session buying momentum managed to return the price at the 200-day moving average. Today selling pressure extends making fresh monthly lows at $8500.
Yesterday the Abu Dhabi Global Market authority published a range of amendments to its cryptocurrencies framework based on the guidelines by the Financial Action Task Force. The new update changes the term from “crypto-assets” to “virtual assets,” which is aligned with the terminology deployed by FATF. The FATF guidelines created to help law enforcement track suspicious trading activities and stop money laundering and terror financing. In that way the FATF guidelines require crypto exchanges to store and share information about their members.
Bitcoin price is 0.04% lower at $8801 recovering almost all of the Asian session losses that send the price to $8500 mark. Bears are in control of the short term as managed to pierce below the 50 and 200-day moving average. Now the $8800 mark is the make or break level for bitcoin.
On the upside, first resistance for BTCUSD stands at $8850 the daily top. More selling pressure will be met at $9230 the 50-day moving average. A settlement today above that level might test the next resistance zone at $9674 the high from February 25th.
On the other side, initial support for BTCUSD will be met at $8500 the daily low. If bitcoin price breaks below, the next support stands at $8280 the 100-day moving average. A move below the 100-day moving average will attract more sellers, targeting the next support at $7740 the low from January 9th.