- BTC/USD near-term upside is limited by $9,000
- Regulators lulled the markets into sense security
- European authorities warn about cryptocurrency trading risks
- Bank of Japan’s Kuroda is sceptical
BTC/USD has been in steady recovery mode since Monday. Currently the coin is trading at $8,700, down 2.5% on the day, but the bearish momentum is not strong enough to take it below $8,000.
Looking technically at BTC/USD, needs to take out $9,500 resistance to continue the upside towards the ultimate resistance at $10,000. The former resistance at $8000 now serves as the support level, strengthened by both 61.8% Fibonacci retracement level and 200-DMA as shown on the daily chart below.
Cryptocurrency markets calmed down after a turbulent week as traders welcome relatively mild approach demonstrated by top U.S. regulators that called for more oversight without strict industry-killing measures.
European regulators are more cautious, but not totally restrictive. On Monday three European bodies – the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) – issued a combined warning to EU residents considering investing in cryptocurrencies. They stressed the volatile nature and lack of regulation as primary risk factors and advised agianst investing more than a person can afford to lose.
“VCs [virtual currencies] and exchanges where consumers can trade are not regulated under EU law, which means that consumers buying VCs do not benefit from any protection associated with regulated financial services. For example, if a VC exchange goes out of business or consumers have their money stolen because their VC account is subject to a cyber-attack; there is no EU law that would cover their losses.”
The Governor of the Bank of Japan Haruhiko Kuroda was on wires today, stressing the speculative nature of the cryptocurrencies, which are not actually currencies.
«Cryptocurrencies like bitcoin not seen as currencies» – he explained.
BTC/USD, daily chart