Bitcoin price analysis: BTC/USD trapped in a range, ignores Japanese cryptocurrency group proposal to limit trading volumes

The Japanese cryptocurrency industry group considers introducing a ceiling on customer trading volumes, a local outlet reports, citing sources. Japan Virtual Currency Exchange Association (JVCEA) plans to make a decision on the issue in the nearest future and forward it to the Financial Services Agency. the approval of the official regulator will make the Association recognized as a self-regulatory body in accordance with the payment services law.

The proposed limit is supposed to provide better protection for small traders that may suffer heavy losses amid high market volatility. The exchanges will be offered two options: to implement a blanket ceiling which is low enough to ensure safety for customers with limited assets; or customized limit that will take into account investment experience, revenue, cost of assets and age of traders.

Cryptocurrency market reaction is muted as the proposed decisions of self-regulatory bodies with unclear legal status are not something to be frightened of. Bitcoin is trading in a narrow range, mostly unchanged since the start of the day.  

Bitcoin's technical picture

On the intraday level, BTC/USD is well supported by below both 50 and 100 SMAs (1-hour chart) currently at $8,190 and $8,146 respectively. Once tis area is cleared, the downside may be extended towards critical $8,000 strengthened by 200-SMA and to 50.0% Fibo retracement at $7,862. On the upside, the local resistance is created by $8,274 (Asian high), followed by $8,300. 

BTC/USD, 1-hour chart