Bitcoin Reaching Strong Resistance Point that Caused Several Downtrend Selloffs
Bitcoin is yet again making its way upwards as it breaches $5k yet again. The market is still green as the total market cap records at $176 billion.
At the time of writing, BTC has been trading at $5,040 with 24-hrs gains of 0.46 percent as per Coinmarketcap.
BTC 5-days chart, Source: TradingView
Today’s highest gainer is Maximine Coin with over 41% gains while Dogecoin is the biggest loser with 9 percent losses.
Not really. I don't think that Bitcoin started it. We've been in #altseason for weeks now.
Momentum was building the crypto markets gradually and steadily since the mid-Demeber lows.
What happened on Tuesday brought the rally to a bigger light. https://t.co/HLqUZitGep
— Mati Greenspan (@MatiGreenspan) April 5, 2019
Wall Street Immersing in Bitcoin Rally
As we reported earlier it’s not just the retailers that are invested in BTC price shooting up but also Wall Street. Mati Greenspan, the senior analyst at eToro in his latest market update shares the volume of the Bitcoin futures on CME that reached 22,542 yesterday which amount to $563 million as CME’s 1 BTC contract equals 5 BTC.
As per Messari’s top 10 real exchanges volume they traded about $685 million, so even though contracts on CME are cash-settled with no BTC actually exchanging hands, Wall Street makes for a significant part of the market.
On April 2nd, Bitcoin went straight through $5k from around $4,100 without any resistance. Chicago-based cryptocurrency trading unit of DRW Holdings, that operates Over-the-counter (OTC) taring desk since 2014 reported,
“For the first time in 8 weeks, BTC has moved more than 10%. We are watching for $5,000 (the next even number) and $5,500-$5,800 (strong resistance points which have previously caused several uptrend and downtrend selloffs to and from $20,000).”
Desk Update: The post-trade analysis of Monday evening’s price action revealed a series of large bids (>1,000 BTC per order) within a 1 hour span, which appear to be actual buyers vs. forced liquidations. pic.twitter.com/UiuHLoCbPr
— Cumberland (@CumberlandSays) April 4, 2019
With Bitcoin currently stuck at $5k since April 2nd, BTC needs to show momentum here with analysts expecting $6k and even $7k as the next target.
— CJ (@IrnCrypt) April 4, 2019
SEC wants to Work Directly with Industry Stakeholders
In another event, the good news came from SEC’s side when it released its crypto token guidance admitting that not all digital assets are securities. But apparently, it doesn’t answer any big questions about crypto regulation as Jake Chervinsky, a securities litigation lawyer at Kim and Kobre explains,
21/ The no-action letter itself isn't too interesting. There's little doubt that TKJ tokens aren't securities. We didn't need a letter for that.
But that's not what it was for. It was another message from the SEC: "if you come talk to us, we'll go easy." If you don't? 🤷♂️
— Jake Chervinsky (@jchervinsky) April 4, 2019
“The SEC does not make the law. The Framework isn't binding on anyone, not even the SEC itself. SEC lawyers can only decide their own enforcement strategy, but they can be wrong & they can lose in court.”
However, he notes that good thing is SEC wants to connect directly with the industry stakeholders and “It was another message from the SEC: “if you come talk to us, we'll go easy.” If you don't?”