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This week, SEC stated that it would pay further attention to trading platforms which operate like exchanges and failed to register with the regulator. These regulatory concerns created a selling pressure on Bitcoin.
Note that this negative sentiment has not affected only Bitcoin but almost all cryptos. Bitcoin fell to lowest in three weeks. Specifically, this week Bitcoin decreased by 5.25%, that is to say, $9,379.9.
Bitcoin has made a reversal this week and rose up to $11,696 on Monday. Nevertheless, it fell after failing to break the technical resistance levels that hold and trigger the selling appetite for the popular crypto.
The selling pressure it may give more momentum to the bears and probably Bitcoin will reach its recent low at $6,000, living the bulls watching from a distance and not supporting the coin affected by the fundamentals too.
Technical View
On the daily timeframe of the technical view, we may detect a valid Kumo break out to the downside. In addition to this, it could be detected the reversal that occurred and the failing of the price to break the strong and thick Kumo supported by a double top formation.
Now, if the price breaks the Kijun Sen line too and, the two lines Tekan Sen and Kijun Sen are in a bearish formation, (which means that the yellow line would be on top of the white line) and the Chikou span green line is out of the price, then the price may head further down.
Despite the fact that the market tends to look bearish, we cannot be absolutely sure that this will continue.
Crypto prices seem to face wide fluctuations, so it would be recommended to be prudent.
In the short term timeframe of 1h, we may see a potential bearish picture. In this case, selling opportunities may come across each time the price bounces on the Kijun Sen line and follows the biggest timeframes trend.
About the author:
Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts.
Among others, Marios is delivering weekly trading webinars. Sign up to upcoming webinars, here.