Tanya Abrosimova
Independent Analyst
- BTC/USD stays in the old range amid directionless trading.
- IMF report shows that Fund's economists are concerned about cybersecurity risks.
Bitcoin stays below $6,600 handle after a failed attempt to regain ground late on Tuesday. The upside momentum is fading away on approach to this technical resistance, which has proven to be a hard nut to crack for Bitcoin bulls. BTC/USD is changing hands at $6,555 with short-term downside bias; however, it is hard to say, if bears have enough motivation to take the coin out of the range.
IMF is concerned
The International Monetary Fund (IMF) warns that the recent crypto boom forces banks and other financial institutions to adapt to new realities, thus creating new vulnerabilities in the international financial system. The Fund is worried by frequent cybersecurity breaches that pose new threats to payment systems.
“Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. The continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” according to the World Economic Outlook report, published on Tuesday.
Apart from that, IMF is concerned about excessive risk-taking in cryptocurrency trading, encouraged by relaxed or non-existent regulationю This is also a potentially dangerous situation that creates additional financial vulnerabilities within the international system.
“An indiscriminate rollback of post-crisis regulatory reform and oversight—both domestically and internationally—could encourage excessive risk-taking, leading to a further buildup of financial vulnerabilities,” the report says.
Bitcoin’s technical picture
BTC/USD is sandwiched between $6,600 resistance strengthened by DMA50 and $6,500 support created by October 7 low. On the intraday level, Bitcoin is supported by a confluence of strong technical indicators located right below the current price. They include SMA100 and SMA50 (4-hour chart) and the short-term upside trendline from September 17 low. Once it is cleared, the downside may gain traction to take the price towards $6,400.
BTC/USD,4-hour chart
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