Bitcoin Fundamentals Bright but BTC Could Slide To $7,500 Before Rallying
The trajectory of cryptocurrencies as an emerging, disruptive and fiat-competing sub-sector is proving to be a headache for regulators-at least that is what we see in China, and now the US.
Handling Bitcoin and cryptocurrencies proliferation, the community government decided to uproot the “money laundering and scam” currency back in 2017. The US, many analysts reckon, could decide to take a draconian approach in their bid to protect the “mighty-that what’s President Trump said” USD.
Only time will tell. However, before then, there are some tell-tale signs that regulators are lacking in their knowledge to make sound conclusion on what Bitcoin is.
While the narrative is that the global, decentralized and cheap coin is a tool for money laundering, there has been no evidence to conclusively affirm that claim. Yes, reference might be the Silk Road drama and the incarceration of the founder of the site but that’s about it.
Meanwhile, the opaque operations of banks mean there are tons of under dealing effectively making these financial institutions the perfect money laundering agents. Big money fines as well as arrests of banking honchos attests to this preview.
Then again, because of their careless the devastating Great Financial Crisis of 2008-09 forced Satoshi Nakamoto to the edge. With this pressure to spread out the powers from centralized banks, he created Bitcoin.
An unstoppable forced primarily governed by mathematics with no intermediary. It is trustless, controlled by the masses and thus, there is no point of weakness as the coin’s value proposition is security over performance.
BTC/USD Price Analysis
1 BTC/USD =$49,308.2152 change ~ -4.79%
- Chart courtesy of Trading View—Coinbase
After a 14-day rout, Bitcoin prices are stable-for now. Adding 2.8 percent in the last week, there is a respite for BTC bulls. Although positive, a single glance at the daily chart reveal traces of bears.
Note that after an overwhelmingly bullish half, prices were stretched and therefore a correction is often a needed relieve for further re-entry. In the chart, BTC is stretched. Evidently, the correction of June 26 over-extension could see further draw down in days ahead.
Backing this overview is the lack of buy pressure even after the temporary pullback of the tail end of last week. The failure of buyers to reverse losses of July 14 through to 16 is hinting of sell pressure.
Unless otherwise there is a spike that will drive prices above June 27 low of $11,200, every high is technically a liquidation opportunity for aggressive traders. To cushion themselves, a stop limit above $11,200 will be enough. In that case, first target will be $9,500.
However, any surge and close above $14,000 nullify this trade plan. Conversely, steep losses below $9,500 could spur a wave of panic sells that will see BTC tumble to $7,500 and even $5,500 in a retest.
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your due diligence.
Bitcoin’s price is $49,308.22 BTC/USD exchange rate today. The real-time BTC market cap of $919.33 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $18.62 Billion and live coin value change of BTC -4.79 in the last 24 hours.