- 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).