Bitcoin price analysis: BTC/USD is trading in an inverse head-and-shoulder pattern; China expresses distaste for cryptocurrencies at the G20 summit

China says cryptocurrencies need stricter regulations to mitigate possible problems that could be caused by the digital assets.

BTC/USD price consolidating above $9,000 after sharp declines witnessed in the past week.

Bitcoin price has started to recoil after dropping below the $9,000 level. The decent was, however, short-lived and the price embarked on a recovery path above $9,000. The cryptocurrency is trading an inverse head-and-shoulders pattern on Wednesday afternoon. There is a considerable bullish momentum that is forming at $9,075 level.

Current news in the cryptocurrency market shows that the just-concluded G20 summit has reached an agreement on cryptocurrency regulation. The group of countries has agreed that the digital assets need to be regulated, but this can only be accomplished after a detailed study. The deadline for regulation has been set for July 2018. China, on the other hand, was not shy to express its distaste for the cryptocurrencies. The delegation led by Zhou Xiaochuan asked for strict regulations on cryptocurrencies. Mr. Zhou went ahead to point out the problems that could occur as a result of cryptocurrencies. For example, illegal trade, money laundering, and terrorism financing.

Technical Analysis

Bitcoin price is correcting higher towards $9,100. There was an upward momentum initiated during yesterday’s trading session at $8,364. BTC/USD consolidate above $9,000 level after the sharp declines witnessed in the previous week. The price is currently trading near the 50-simple moving average which has been working as a 50DMA support line to the left. The price has been moving up the retracement levels since Monday’s trading. It broke above the 23.6% Fib retracement level with the last high at $9,140 and $7,350 low. The price is testing the support level at $9,000. If it breaks below this level the next support is at $8,400.

BTC/USD hourly price chart