Bitcoin price analysis: BTC/USD cracks the trendline while crypto bulls cheer US Justices Department investigation
- Bitcoin managed to recover above $7,300 handle, but more obstacles are ahead.
- Mike Novogratz believe that US Justices Department will weed out bad actors.
Bitcoin price fell below $7,300 handle during early Asian hours before buyers appeared and pushed the price higher. The digital currency No. 1 is changing hands at $7,369, mostly unchanged on the day. On daily basis, Bitcoin price gained 0.85%, while market value settled at $126B.
Looking technically, BTC/USD dropped below lower line of the triangular formation around $7,370. If the breakthrough is confirmed, we may expect the price to go return to $7,000 and possibly $6,483 (April's low). If this happens, bears may claim short-term victory. On the downside, an upside movement above the mentioned resistance, the recovery will gain traction with the first aim at $7,683 (23.6% Fibo) followed by $8,000.
Bitcoin and other cryptocurrencies were badly hit by the news that US Department of Justice had launched the investigation into price manipulations on crypto markets.
Billionaire Mike Novogratz and some other prominent cryptocurrency bulls hailed the U.S. Department of Justice’s investigation into Bitcoin's price manipulations. They claim that this approach will help to weed out bad actors and push the market to a more mature and civilized state.
“Weeding out the bad actors is a good thing, not a bad thing, for the health of the market. Plenty of exchanges have these inflated volume numbers to create some sense of excitement around coins,” Novogratz said in the interview with Bloomberg.
BTC/USD, the daily chart
Author
Tanya Abrosimova
Independent Analyst
