Bitcoin regained some of the major losses it had on Friday. The cryptocurrency started to rise again since the European afternoon and has continued so during today’s Asian morning. It could be the case that Asian traders pushed the cryptocurrency’s price back up again. Another interesting fact of Friday’s rise and fall in Bitcoin would be that other cryptocurrencies showed similar behavior, making Bitcoin, currently at least, the trend setter for other cryptocurrencies. On other news headlines, the Israeli Securities Authority seems to be about to propose a ban of companies which are based on Bitcoin from the Tel Aviv Stock Exchange and the Russian finance minister stated that cryptocurrencies should be traded only by professionals, adding further to the voices urging caution.
As mentioned, Bitcoin posted heavy losses during Friday, breaking the 14,000 US Dollar barrier and briefly the 12,000 level. The cryptocurrency regained from then on and continued trading today, above the 14000 US Dollar barrier but still below the 15580 resistance line. Should it come again under selling interest, we could see the cryptocurrency trading in a similar manner once again by breaking the 14000 level and testing the 12000 barrier. Should the buying interest continue to push the prices higher, we could see Bitcoin breaking the 15580 resistance hurdle and aiming the 17000 resistance zone. It could be the case that Bitcoin is not out of the woods yet and a second sell off wave is still possible, hence we are quite hesitant to call for a new rally in Bitcoin prices at the moment these lines are written.
Bitcoin dropped heavily over today’s Asian morning after media reports suggested that large investors intend to reduce their exposure or even realize the profits of the last months surge in the cryptocurrency. Should the reports be true, there could be a shift from few large holdings and large investors to smaller holdings and more but smaller investors. Also it could be the case that more and more investors are opting to switch to other trading instruments which allow them to go short on their investment, hence providing more flexibility. On other news reports, Goldman Sachs is intending to open a cryptocurrency desk, accommodating the increased demand from its clients.
In the meanwhile Bitcoin dropped heavily yesterday and during today’s Asian morning, breaking the 15580 dollar support zone and tested the 14000 support level. We still have the view that the bears have the upper hand on Bitcoin and should they continue to do so, the cryptocurrency could break the 14000 USD support level and test the 12000 support zone. Should the 12000 support zone also be broken we could see bit coin aiming for the 8900 level which could be viewed as the starting point of this month’s surge. On the other hand should the bulls take control of the market we could see the cryptocurrency breaking the 15580 resistance level and aim for the 17000 resistance zone.
Monday was the first full day of trading for the Bitcoin futures market of CME. Volume and volatility was low, moderating any expectations of a new significant surge in the price of the crypto currency. Main reasons cited for the low volume and lack of excitement were high initial margins that are required, Dollar deposits instead of Bitcoin and time limitations set by exchange opening hours. In addition to that, warnings about the crypto currency increase as France’s finance minister is pushing for a debate about regulating the crypto currency at the next G20 meeting and the governor of the National Bank of Denmark states that bitcoin is a dangerous bubble. It remains to be seen whether Bitcoin is a bubble or not and if the warnings consist a self fulfilling prophecy or not.
Bitcoin dropped on Monday during the Asian morning, however it regained some of its losses during the European day and continued to trade in a consolidation manner throughout the day between the 17000 support level and the 19500 resistance level. Should the pair be influenced by the bad press and the low volumes we could see it break the 17000 support level and aim for the 15580 support zone. Should the crypto currency come under buying interest, it could break the 19500 resistance level and aim for the 21000 resistance hurdle.