Bitcoin price back in the red after President Donald Trump signed the controversial CLOUD Act into law

Bitcoin price has continued with the drop recorded during weekend trading. The cryptocurrency is down by over 2% in the last 24 hours. BTC/USD exchanged hands at highs of $8,972 on Saturday, after which a downside momentum ensued throughout the rest of the weekend. The declines could be a reaction by the traders to the recent bill the US president signed into law.

The CLOUD Act is raising concerns in the cryptocurrency market especially after the famous whistleblower, Edward Snowden revealed the hand of the National security Agency (NSA) in Bitcoin. He argued that the NSA is secretly monitoring operations on Bitcoin bringing into question the privacy of the coin. On the other hand, the addition of the Bill into the picture is doing very little to encourage Bitcoin users. The CLOUD Act gives other governments the right to access data from different US-based companies to find information on their citizens. Besides, the Act provides the US government with the right to access more private data in the name of security enforcement.

Technically looking at Bitcoin, the price is testing the 50% Fibonacci retracement level with the previous swing high of $9,135 and a low of $7,362. The downside trend was initiated at $8,934, where Bitcoin price broke past key support levels including $8,500 and $8,350. At the moment the immediate support level is at $8,200. In case of a trend reversal and Bitcoin price starts to gain, the 38.2% Fib retracement level will act as resistance at the pivotal $8,500. 

BTC/USD hourly chart