Bitcoin price analysis: BTC/USD sidelined; muted reaction to CryptoUK establishment

  • BTC/USD is reluctant to go much higher
  • The first crypto trade association is born in the UK

The Bitcoin price advanced towards $8,800, but the upside is still capped at $9,000. The coin struggles to gain momentum despite relatively positive fundamental background.

Regulation is a good thing

Seven largest crypto companies in the UK, including Coinbase, eToro, and CryptoCompare, formed the first crypto trade association with the aim to increase legitimacy and transparency of the industry and thus defy the regulatory concerns. The new self-regulatory body known as CryptoUK developed a code of conduct for its members, which may become “the blueprint” for any future UK regulations.

“The fundamentals are engaging as a single industry with the government. Regulation is imminent and that’s a good thing.” - Coinbase UK CEO Zeeshan Feroz explained.

BTC/USD technically trapped

Looking technically, BTC/USD is trading well above 200DMA, but the coin needs to take out $9,000 resistance to continue the upside towards $9,500. Once it is broken, the market will move on to the ultimate resistance at $10,000. The support level at $8,500 is likely to limit the downside, while the key support comes at $8000 level, strengthened by both 61.8% Fibonacci retracement level and 200-DMA as shown on the daily chart below.

BTC/USD, daily chart

BTC/USD daily chart

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