Bitcoin - BTCUSD
Bitcoin – BTCUSD rallied yesterday more than five per cent after the previous week consolidation above $7,000 mark. Bitcoin breached the $7,500 level but as of writing BTCUSD retreated below that resistance. The last week selling pressure mostly attributed to one of the largest Ponzi schemes in China, the PlusToken.
The US is preparing the ‘Crypto-Currency Act of 2020’ draft bill. The aim of this law is to define which Fed agencies will be in charge of regulating cryptocurrencies. The proposed law will also provide a specific classification of crypto assets as crypto-currencies, crypto-securities, and crypto-commodities.
Bitcoin today is 0.24% lower at $7,491, the capitalization now stands at 136.23 billion. The total cryptocurrencies market cap is 197.79 billion.
Read our Best Trading Ideas for 2020.
Bitcoin managed on Sunday to break above the $7,500 and started today stronger hitting the daily high at $7,644 but retreated below the $7,500 mark. Now the short term momentum is positive but needs today to regain the $7,500 level.
Now traders attention shifts to the upside. Immediate resistance for BTCUSD stands at $7,644 the daily high. If the crypto pair breaks above that level the next resistance will be met at $7,783 the 50-day moving average. In case the bulls capture that level, then a move up to the 100-day moving average at $8,255 can’t be ruled out.
Looking south, the first support for BTCUSD will be the daily low at $7,462. Next support region stands at $7,154 the low from yesterday’s session. It looks like bitcoin has established significant support at the $7,000 mark which offered strong bids for many days the previous week and will be the critical level for the short term. In case the BTCUSD breaks below the $7,000 strong support the next barrier stands at $6,630, while the bears will target the $6,400 the low from December 18th session.
Crypto bulls must be patient, a credible break above $7,500 might offer a buying signal but the most conservatives traders need to wait for a break above the 50-day moving average to enter long positions.