Bitcoin Price Analysis: BTC/USD recovery banks on $10,200 support as reversal looms

  • Bitcoin bulls have not lost sight of $11,000 despite the rejection at $10,500.
  • Wells Fargo looks beyond the zero-tolerance for Bitcoin to invest $5 million in a crypto risk management firm.

Bitcoin is back in the red following the devastating rejection from $10,500. Although a recovery occurred after finding support at $10,080, gains have not been forthcoming as has been witnessed during recent pullbacks. Bitcoin managed to reclaim the ground above $10,200. However, breaking above the short term resistance at $10,300 remains to be a mirage. Instead, the bulls appear to be losing ground towards the support at $10,200.

Wells Fargo Strategic Capital pumps $5 million in Elliptic

The fourth-largest bank in the United States, Wells Fargo has ignored a zero-tolerance on Bitcoin (BTC) that has been witnessed world over to sink $5 million into Elliptic, a provider of crypto asset risk management solutions focusing on financial institutions. Wells Fargo is valued at $503 billion in assets. The $5 million was part of a Series B funding round by Elliptic, totaling $25 million.

Wells Fargo has agreed to support Elliptic’s product referred to as Elliptic Discovery. The tool is designed to assist banks in navigating the wild west of the cryptoassets. In so doing, Elliptic Discovery greatly brings down the risk of exposure to exchange hacks as well as instances of stolen funds. According to the CEO of Elliptic, James Smith:

“For too long, banks’ lack of visibility into the crypto-asset ecosystem has led to zero-tolerance for this emerging asset class. This has frustrated their customers, while they have remained blind to the actual risks posed by their exposure to crypto-assets.”

The Elliptic team adds:

Purpose-built for banks, Elliptic Discovery provides compliance teams with the insights they need to identify flows of funds into and out of crypto-assets and assess the risk that they pose.

Bitcoin price technical analysis

Bitcoin price broke out of a descending channel, open the door for impressive gains towards $11,000, only to fall into a ‘trap’ within a short term rising wedge pattern. The rejection from $10,500 on Thursday managed to save $10,000 support. Unfortunately, recovery lacks the power to clear $10,300 resistance. Instead, BTC is settled above $10,200 amid medium-term signals of a reversal due to the maturing rising wedge pattern.

On the other hand, technical levels clearly show that the bulls are relatively in charge and are working hard to remain in the driver’s seat. The RSI is holding the ground at 70 after a retreat from 75. Moreover, the 50-day SMA is preparing for a cross above the 200-day SMA; a move likely to stir growth towards $10,500 and eventually $11,000.

BTC/USD daily chart

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