Week over week, Bitcoin prices are showing signs of recovery. Though modest, it’s up two percent and finding support at the psychological $6,000 level. This price tag is important because it marks 2018 lows and should there be any break below then sellers are likely to drive prices towards $3,000 as mentioned before.
Bitcoin (BTC) In the News
CoinBase is one of the most trusted exchanges in the world. Just to quantify, the fiat-cryptocurrency broker racked in more than $1 billion in revenue in 2017. That’s a huge sum and coins listed at their desks as Bitcoin, Ethereum and most recently Ethereum Classic often experience deep exposure guaranteeing demand and liquidity.
Because of this, it’s no doubt that CoinBase are influential and we have seen how they are in recent times with rumors of Ripple (XRP) coin listing and how prices shoot up with it. In line with this, they plan on becoming regulated by the US Securities and Exchange Commission (SEC). Of course, the compliance of regulators’ rules is not something that can be side-stepped. Looking back, there are brokers who have been forced to close shop due to their failure to comply to AML and KYC laws for example.
Apparently, CoinBase have been preparing for this it appears. Recently, they acquired Keystone Capital Corp, a known securities dealer. That’s besides Digital Wealth LLC and Venovate Marketplace, Inc. By bringing Keystone Capital on board, CoinBase wings will even spread to other asset types as they continue to tokenize assets while concurrently working with regulators. This they believe will help democratize “access to capital markets” according to Asiff Hirji, the CEO of CoinBase.
As this is happening, China is warming up to prospects of cryptos and related funding models. Through reports, reliable sources said he China Banking Regulatory Commission (CBRC) now have a positive take on crypto. That’s besides their urging of businesses to issue required licenses to businesses keen on venturing on cryptocurrencies. Overly, this is encouraging and represents a 360 turn from their reactive ban of ICOs back in Sep 2017.
Bitcoin (BTC) Technical Analysis
Prices have been fluctuating but encouragingly, it seems as if bears have been tamed. While BTC prices keeps on moving around the main support line at $6,000, we can convincingly say that weekend’s events might after all be a spring board for buyers to add their longs this week. That’s regardless of the fact that this recovery in BTC prices might after all be a short covering because of the accompanying small volumes when compared to the other five candlesticks or so.
We didn’t have a nice double bar bullish reversal pattern even after last week’s candlestick ended up higher. Ideally, we would have wished to see BTC prices racing towards $7,000 or there about reversing week ending June 24 losses.
Then again, we ought to remember that we are in the beginning of the month and this recovery coincided with the expiry of June’s Bitcoin Futures.
Here is a thing when it comes to this chart: Bulls seems to be adding on to their gains following that jut on June 29. After all, we saw a confirmation happen on June 30 and accompanying that was a spike in trading volumes surpassing daily averages.
However, for strong buy signals, then we must see addition of more bull pressure. That means a push above $7,000 and June 22 highs. If that happens today or days to come, then I suggest trading a breakout as we look to buy on dips in lower timeframes. Ideal targets are at $10,000 and $12,000 on the upper edge. Before then, I suggest being neutral.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.