The price of BTC to GBP has been selling off this week but the weekly chart highlights potential for further weakness.
An interesting comment this week came from the Bank of England’s deputy Governor who said BTC was close to posing a financial risk.
John Cunliffe said:
“On the question of bitcoin and other crypto assets and their value, my judgement is they are not at the moment a financial stability risk”.
“But they are growing very fast, and they are becoming integrated more into what I might call the traditional financial system,” he added.
“So the point at which they pose a risk is getting closer, and I think regulators and legislators need to think very hard about that.”
This is the first time a central bank has called out Bitcoin itself as risk to stability but they recently did the same to Tether. This backs up my long-held claim that governments will move to assert their authority over BTC and destroy some of the extreme price predictions for the coin.
BTC to GBP Price Analysis
BTC to GBP topped recently at the 50,000 level and has since tumbled this week to 42,500. The technical picture is ripe for a top if the weekly chart stays this weak into the weekend close then we should see some follow-through to the downside. Support near the 34,000 level on BTC and the May-July support is near 24,000.