High Volumes and Increased Volatility for Bitcoin BTCUSD

Βitcoin – BTCUSD trades higher after the cryptocurrency run an impressive rebound yesterday from daily lows above the $7,000 mark up to $7,770 close to three-week highs and retreated sharply back to $7,300 level. BTCUSD faces strong resistance around the $7,800 region where capped during the recent rebound from $6,534 six-month lows.

Bank of France Governor Francois Villeroy de Galhau said in a conference yesterday that ECB must move fast in creating a central bank digital currency (CDBC) as that will help the ECB to reap the benefits of creating a benchmark CDBC.

China’s central bank is leading the way to create a central cryptocurrency and that puts pressures to other central banks to act fast to prevent the loss of the state control over money.

South Africa Introduces Crypto tax

The South Africa revenue service introduced a cryptocurrency tax that will apply to all cryptocurrency assets. South African citizens who are trading crypto will be expected to start declaring any profits and losses from crypto transactions.

The BTC capitalization stands at 132.18 billion while the volume today has increased to 22,42 billion. The total capitalization of the 100 biggest cryptocurrencies has slipped below the 200 billion mark.

BTCUSD volatility and volumes increased the last trading sessions as bulls fight to hold above the $7,000 mark.

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Pumb and Dump Action Failed to Attract New Buyers

On the upside, first resistance for bitcoin stands at $7,375 the daily high. If BTCUSD manages to break above that level then the next targets will be yesterday’s top at $7,770. Yesterday’s pullback from that level is a negative signal for bulls as the jump failed to attract many new traders and retreated back giving almost all the gains in a couple of hours. The sentiment is negative for bitcoin and only a move above the 50-day moving average at 8,287 can reverse the downtrend.

$7,000 is the Critical Support

On the other hand, immediate support for BTCUSD stands at $7,150 the daily low, yesterday’s low at 7,070 guards the critical $7,000 mark. Many analysts expect that a break below that level will attract more sellers and accelerate the downtrend. In that case the next target to the downside is the $6,534 the November 25th low. A break below that level will open the way for bears to visit the May lows at $5,705.

Ethereum also trades higher today adding 0.17% at $145.71, Litecoin on the other hand trades 0.56% lower at $44,44.More content