Bitcoin price analysis: BTC/USD spikes above $7,000; Australian regulator targets unregistered crypto exchanges

Bitcoin is on the rise amid vigorous upside correction, based on a combination of market positioning, technical and speculative factors. The momentum might prove to be short-lived as there are no obvious fundamental reasons to justify the bullish run.

On the contrary, we continue to receive confirmations that global regulators are adopting strict approach towards digital assets and ICOs. Japanese Central Bank warns public about risky and speculative nature of cryptocurrencies, while Australian authorities focus on money laundering issues.

Cryptocurrency exchanges located in Australia shall adhere to new anti-money laundering rules, which come into effect today. Namely, the exchanges shall be registered with the agency, maintain the approved AML/CTF program, identify and verify users and report suspicious transactions above A$10,000 (US$7,700).

Operators working without registration may be subject to criminal charges, though the companies are given six months to fulfill new requirements.

Bitcoin price technical picture

BTC retraced from intraday high registered at $7,435 to trade at $7,355, right on the upper line of downward Andrew's pitchfork. The coin needs to settle above this level, confirm its short-term bullish stance. The next resistance is seen at $7,500 and $7,800, while the support comes at $7,000. The move below $6,900 may increase selling pressure and push the price towards Monday's low at $6,766.

BTC/USD, the hourly chart