Bitcoin price analysis: BTC/USD butchers $6,300 support despite positive UK FCA Chief’s take on cryptocurrencies

The bear market keeps ignoring the abundance of positives news in the crypto sphere. As shared in the daily market update, Bitcoin is battling to remain stable above $6,300 but its upside is capped below $6,400. In fact, at the time of writing, BTC/USD has smashed below the support at $6,300.

A break past the trendline support at $6,311.34 triggered the breakdown that has been supported at $6,260. The bulls, who were not about to allow another battering move from the sellers found an entry opportunity. There is a reversal underway approaching $6,300 resistance (former support). However, Bitcoin is trading at $6,287. Looking at the chart, Bitcoin is likely to correct above $6,300 in the short-term. For the buyers, a support above $6,300 is essential to the for further upside swings to $6,400 and beyond.

Meanwhile, the CEO of the Financial Conduct Authority (FCA), Andrew Bailey has said that his team is looking towards encouraging digital asset technology and innovations but at the same time, be aware of the risks brought about by the virtual currencies. Bailey said this during the authority’s Annual Public Meeting conducted on Tuesday.

He took the time to outline at least four risks that fall under the regulator's mandate including technological change and innovation. Bailey insisted that FCA is determined to support innovation while countering threats. He also referred to digital assets as a financial innovation and that their contribution to the financial system is vital especially when it comes to the blockchain technology. He explained:

“A good example of this is crypto assets. We are keen to see the potential of their underlying technology, and do not rule out roles for cryptoassets themselves.”

Bailey also said that the risks associated with cryptocurrencies are apparent. He singled out the volatility nature of the crypto prices and lack of knowledge on the part of investors who are too eager to take on the assets.

“We are working closely with the Treasury and Bank of England to assess these issues and come up with appropriate responses,” he continued.

BTC/USD 15-minutes chart