- Bitcoin is inclined to a correction after failure at critical resistance.
- FSTB says digital currencies play little role in a crime.
Most of the digital currencies went in red on Tuesday, celebrating Labor Day with downside correction. Bitcoin was no exception as on BTC changed hands at $8,832, which is the lowest level since April 26. Though, the coin No.1 quickly regained ground and returned to the critical $9,000 handle. Currently, BTC/USD is trading at $9,038.
From the longer-term perspective, Bitcoin entered a minor correction phase, having failed to surpass strong resistance and the psychologically important $10,000, reinforced by 200-DMA and 50% Fibo retracement level. This is but natural, considering the fact that the virtual currency gained over 30% in April.
Meanwhile, Hong Kong Financial Services and Treasury (FSTB) conducted a research and came to the conclusion that digital currencies had little impact in organized crime, according to the research, published by the regulator.
“While we have not found substantial risks in these newly developing payment methods or commodities, this is a rapidly developing area requiring continued monitoring. There does not seem to be any visible impact affecting the overall risk in Hong Kong so far. The risk of VCs is assessed as medium-low,” FSTB said in the report.
This is a good development, which may signal that regulators are moving away from blind accusations and adopt a pragmatic approach.
Bitcoin technical picture
On the intraday level, BTC/USD is below all MAs, which spoils the short-term technical picture. The sell-off may be extended if the coin moves back below $9,000 in the nearest future. The first local support is created by $8,700 and $8,000 with 50-DMA and $61.8% Fibonacci retracement placed around that area. The resistance is created by at 50-SMA (hourly chart) at $9,120 and at $9,200 (100 and 200-SMAs, hourly chart).
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.