Latest Bitcoin News
Even though blockchain applications operate on the premise of freedom, regulators from all over the law are working hard, advising policymakers to formulate fitting laws that would once and for all tame speculative trading preventing value eroding boom and bust cycles. As the world’s largest economy, the US has their rules when it comes to Bitcoin and digital asset trading.
Although many states don’t consider Bitcoin as money—rather property and commodities that the CFTC should be overseeing, other countries are more open to blockchain and cryptocurrencies. Yes, they realize the potential of the underlying technology — Bitcoin which has the backing of governments with Chinese companies holding more blockchain related patents than any other country, but are simultaneously apprehensive of its unregulated nature. It has been made worse by the propensity of investors to fuel a bubble and worse still, lack a thorough understanding of the product or platform they are sinking their monies into.
Also Read: Bitcoin predictions
It is because of this that Italy did issue a decree with the aim of regulating cryptocurrencies and other DLT technologies. The official publication–Decreto Semplificazioni, was approved by the Italian Senate Committee of Constitutional Affairs and Public Works last week. Decreto Semplificazioni stipulates what the government consider as cryptocurrency as well as laying out which DLT applications are legal. It goes ahead and recognizes that blockchain technologies can be tools for verifying timestamps for documents as well as contracts.
BTC/USD Price Analysis
Unless otherwise there are strong surges above key resistance levels at $3,800 and later $4,100, sellers have an upper hand. As we can see from the charts, BTC is down 3.4 percent in the last day and down 2.8 percent from last week’s close meaning sellers, despite our staunch position is in control.
Moving on, bulls of late Dec—early Jan could build momentum but that depends on whether BTC will find support either at $3,500 support—the 78.6 percent Fibonacci retracement level of Dec 2018 high lows or at $3,200—the bases of Dec 2018 or 2018 lows.
Note that the deeper the retracement, the weaker the bounce back and all we shall have is a ranging market with caps at $4,500—Dec 2018, preventing rallies towards the ideal $6,000 mark. It is for this reason that caution must prevail and my advice going forward is to liquidate BTC at current prices to stable coins—USDT, USDC or any other coin.
On the reverse side, traders at platforms as BitMEX or Deribit can short BTC futures on every high as long as prices are trading below the $3,800 mark.
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.