This week, Bitcoin price saw a continuous decline thanks to multiple new developments in the industry that could spell tighter rules against cryptocurrencies. This was highlighted by Google’s proposed ban on crypto advertising on its platform, similar to the restrictions set by Facebook in January that took the coin’s price down by 12%.
However, some say that tighter regulations in the long term are good for the industry since they would “weed out” misleading or deceptive promotional practices. Hence, any pullback in cryptocurrency prices could be momentary.
Moreover, the BTC price drop experienced recently was said to be triggered by a statement made by the SEC last week that expanded its scrutiny to cryptocurrency exchanges. As well, news of compromised accounts on Hong Kong-based exchange Binance did not help to boost investor confidence in this market.
BTC/USD Rallies Back Temporarily
Today, BTC rallied back to the $8,500 price level, which was where it was trading at toward the end of last week. Although Bitcoin started the week trading at close to $10,000, it dropped to a seven-day low of $7,788 mid-week.
Currently, BTC is on a bullish trend, testing a major resistance of $8,600. A support has been established at $8,100, so a dip below $8,000 is unlikely to happen. For the next hours, we could see BTC stabilize and trade in the range of $8,450 to $8,550 while continuing on this bullish path.
The technicals are also showing a weak bullish sign, led by the MACD indicator. Trading volume has also picked up, so further upward movement is still possible. However, we probably won’t see BTC return to $9,000 in the short run.
Looking at the Technical Indicators:
- Hourly MACD — bullish signal
- Major Support Level — $8,100
- Major Resistance Level — $8,600
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