Bitcoin is again on red territory, down 1.45% in the past 24 hours. It seems that the $ 6,600 area will be the dividing line in the sand between the bulls and bears for the day ahead.
Why did the main cryptosphere fall below this level again? On the news front, the IMF said in a statement Tuesday. The fund warned of Bitcoin’s rapid rise to the wider Crypt market as well as the possible adverse effects on the global financial system.
The IMF added that continued cyber attacks and security breaches create additional threats, especially if block technology is used to facilitate cross-border transactions. Although the IMF’s comments are nothing new, the moment is more important as the G20 and others want to introduce a regulatory framework for the crypto market. Regulators and governments are certainly interested in the issues related to the jurisdiction, the virtual nature of Bitcoin, and other crypto-points that enable investors to circumvent rules and regulations. That is what ultimately led to the G20 meeting to explore and introduce a single framework.
Judging by the failure of Bitcoin to recover its losses for the year, the lack of positive news, the uncertainty about the forthcoming regulatory situation and the pending SEC solutions for Bitcoin’s ETFs are working against Bitcoin and the wider market. And despite the more optimistic view of the expected SEC solutions.
With the IMF, continuing to express concern about Bitcoin and the market, as well as governments and regulators in key jurisdictions seeking greater supervision and control over the wider market, not to mention the fact that price manipulation continues, albeit less obviously. Of all this, the question arises immediately will the SEC really be able to continue and approve the ETFs or will it be necessary to postpone further?
It seems to me a little unrealistic to expect the approval of the ETFs without a stable regulatory framework, although some strange things happened and the SEC may want to move on. Still, the approval of ETFs for Bitcoin may provide SEC’s stronger rationale to take control of the American Cipher Market.
BTC / USD, at the time of my writing, I traded around $ 6,559 after an unsuccessful breakout attempt of over $ 6,600. At the moment, the direction of movement of the digital coin No 1 is absolutely unclear. A short-term technical picture confirms that it may have provided further consolidation.
My expectations of the day are that the main crypt will continue to trade in a narrow range between $ 6,600 – 6,500 (the bottom of October 4). Investors may need to remain patient and wait for evidence of improvement in the trend before increasing their exposure. The peaks of September remain the key area of resistance that needs to be clearly breached to signal the early stages of reversing the trend.
Within the day, Bitcoin is supported by the crossing of strong technical indicators, just below the current price. These include SMA 100 and SMA 50 (the 4-hour chart) and the short-term upward trend line from September 17 onwards. A convincing move below this area should give the bears further inertia to take the price to $ 6,400.
Author: Silvia Velcheva
* The views expressed in this material do not constitute recommendations or advice for buying or selling currency pairs on the forex market. The predicted predictions meet the expectations of the author of the material and may not materialize. Trading in currencies or marginal margin contracts carries a high degree of risk and may not be appropriate for all investors. Past results are not a guarantee of future success.