Bitcoin price analysis: $9,000 attracts BTC/USD like a magnet; Hong Kong regulator doesn't find anything "criminal" in virtual currencies


  • 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).

BTC/USD, the hourly chart

 

 

 

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin resumes the decline after a consolidation period

Bitcoin crashed below $8,700 and tested $8,550 during early Asian hours on Thursday. The coin moved outside the recent range and extended the downside into the end of the week. BTC/USD has lost 2% since the beginning of the day and 1% in recent 24 hours. 

More Bitcoin News

Altcoin segment: bullish war drums

Sunny King, the creator of the consensus protocol Proof of Stake (PoS), has stated in a recent interview that Bitcoin has a vital role as a reference value in the crypto-verse, but that the highest growth potential is in the Altcoin segment.

More Cryptocurrencies News

ETH/USD hovers around $185.00, vulnerable to further losses

ETH/USD is trading at $185.27 at the time of writing, having recovered from the intraday low of $184.11. The second-largest digital asset with the current market value of $18.8 billion has lost 1.34% of its value since the beginning of Thursday and stayed mostly unchanged on a day-to-day basis. 

More Ethereum News

Ripple price prediction: XRP/USD smashes below critical support of $0.2700 – Confluence Detector

Ripple’s XRP extended thee sell-off to $0.2633 on Thursday. The coin is moving in sync with the market, controlled by bearish sentiments. A sustainable move below $0.2700 support bodes ill for XRP's short-term forecast, making it vulnerable to further losses.

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bulls wasted their chance

Bitcoin has been oscillating in a depressingly tight range since the beginning of November. Vanishing volatility makes it harder to engineer a decisive breakthrough from the range. 

Read the weekly forecast

BTC

ETH

XRP