Bitcoin Price Breaks the $5300 BTC/USD Exchange Rate Level, Plus Top News Analysis
Yesterday, the outlook was Bitcoin is still consolidating around the $5000-$5200 level after correcting nearly 10% last week. A common thought for the correction is that the Bitfinex news and Tether FUD were at fault. Nonetheless, the correction provides the necessary liquidity for a possible move up. Anticipating that the current correction still has some further downside, many traders opened up a BTC short hedge, allocating 10% of portfolio to manage risk.
On the BTC daily chart, there is a head and shoulders pattern forming that could indicate an even further downside move if a bearish divergence emerges around marked levels (see chart below👇). If this scenario plays out, we will be allocating a higher percentage of our portfolio to the short hedge position and making sure to TP on the altcoins profit.
We are still assessing further price action to determine a bearish divergence before establishing the next step in our portfolio management.
Overall, the price of Bitcoin has been moving between the $5000-$5400 level with occasional wicks to $5600 and $4800.
Until there's a significant move upwards/downwards and clear indication of the market direction, we are managing our portfolio by utilizing low leverage hedge short position and increasing our exposure to cheap altcoins.
Bitcoin dominance is currently at 55-56%, as it got rejected by the December 2019 level resistance. While further price action to validate the trend is necessary, this can be seen as a possible start to another altcoins cycle, considering the degree of correction that even top altcoins have experienced such as ETH and XRP.
Live Bitcoin (BTC) Price:
1 BTC/USD =$57,229.2197 change ~ -0.17%
India Is Thinking of Banning Digital Currencies
A report by the Economic Times stated that India is in the process of drafting a bill that would completely ban cryptocurrency 😵.
Several of India's government agencies, such as the Department of Economic Affairs, the Central Board of Indirect Taxes and, Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA), supported the notion to fully ban the “sale, purchase, and issuance of all types of cryptocurrency.”
The primary arguments behind this agenda is the use of cryptocurrency for fraudulent schemes and the impact that it might have on India's local fiat currency if crypto is eventually being adopted for payments.
Elon Musk & Ethereum
The figure behind Tesla and SpaceX, Elon Musk, has been famously known for using his twitter account in a relaxed manner. This time, Elon started a conversation around ETH as he tweeted the word “Ethereum” on April 29 without providing any context to it. The crypto community quickly caught on to it with Vitalik Buterin extending an invitation to Elon for Ethereum's DevCon in October.