Bitcoin price analysis: BTC/USD clenches to $7,000; Bank of Japan warns about cryptocurrency related risks
|- Japanese regulator publishes cautious views on digital assets.
- Bitcoin stays above $7,000, but the upside is limited.
Bitcoin price has gain 3.5% on the day, trading at $7,150, but the upside momentum is weak as cryptocurrency traders cannot make their minds about what to do now. Current Bitcoin market capitalization is $120B, up from Monday's $116B, but more than two times below this year's high at $294B.
Bitcoin trading is highly popular in Japan: over 55%of BTC trading volume is attributed to Japanese Yen, according to Cryptocompare.com. But the nation has fallen victim to several high-profile crypto theft cases, which. forced the central bank to change its stance towards digital assets. The regulator demonstrated rather an aggressive position in cryptocurrency related Q&A that was published on the financial education site run by the Bank of Japan.
BOJ stressed the difference between traditional money and digital coins and draw particular attention to the risks related to investing in this type of assets, especially in the context of high price volatility and hack threats.
Bitcoin price technical picture
BTC broke above both 50 and 100-SMA on the hourly interval, but the upside momentum is fading away on approach to $7,200 handle. If this resistance is cleared, the price might continue the bullish recovery towards the next significant technical level created by the upper line of downward Andrew's pitchfork (currently at $7,350). This area is likely to cap the upside for the time being. On the downside, the nearest support is seen at $7,000, while the move below $6,900 may increase selling pressure and push the price towards Monday's low at $6,766.
BTC/USD, the hourly chart
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