Bitcoin price analysis: BTC/USD bulls take a breath; EU Committee says, cryptocurrencies won't substitute state-issued money

Bitcoin is rangebound after Monday's stellar rise above $6,600 handle. The digital coin No. 1 broke above pivotal $6,483, but the upside momentum is fading away, as there is no follow through as of yet, despite strong positive dynamic of all major altcoins. BTC/USD is changing hands at $6,630 with the nearest short-term support created by $6,663 (50-SMA, 30-min chart), followed by the above-mentioned $6,483. On the upside, the resistance comes at $6,773 (200-SMA, 4-hour chart) with the ultimate bullish aim at $7,000.

Central banks have nothing to worry about when it comes to virtual currencies, the latest report of EU Parliament shows. The research paper, prepared by Committee on Economic and Monetary Affairs (ECON) draw parallels between digital currencies and other forms of private money and revealed several reasons, why they won't substitute traditional currencies any time soon. 

"They remain unlikely to challenge the dominant position of sovereign currencies and central banks, especially those in major currency areas. As with other innovations, virtual currencies pose a challenge to financial regulators, in particular, because of their anonymity and trans-border character," experts concluded.

BTC/USD, the 30-min chart