Bitcoin price analysis: BTC/USD clinches to $7,000 amid new regulatory storm coming from Europe

Bitcoin dipped marginally below $7,000 handle and touched $6,960 low during early Asian hours as the upside movement ground to a halt despite positive developments, including the announcement of new crypto index fund launched by Morgan Creek Digital. The digital coin No. 1 is changing hands at $7,000, slightly down both on a daily basis and since the beginning of Thursday. 

More regulatory scrutiny to come

Meanwhile, a new regulatory storm might be brewing in Europe as European politicians will discuss the risks and challenges created by digital assets when they meet in Vienna on September 7. The draft note contains a reference to usual suspects such as lack of transparency, money laundering, and terrorist financing, Bloomberg reports.

Bitcoin's technical picture

BTC/USD remains close to the critical $7,000. Bearish attempts to take the price lower haven't been successful so far, which means that the coin is still locked in a tight range. A resistance zone packed with strong technical levels goes from the current price to as high as $7,128 (Tuesday's high). If it happens to be cleared, the upside may be extended towards $7,400 (38.2% Fibo retracement level). 

On the downside, once below $7,000, the sell-off may gain traction and take the price to the downside trendline and SMA100 1-hour chart (both currently at $6,863).

BTC/USD, 1-hour chart