Bitcoin price is again in the red at $6,400 but rejects the $6,000 resistance yet again. With prices bottoming out, it is expected bulls will finally get into effect. Moreover, a new research reveals crypto prices are affected by regulations. Hence, positive stance on Bitcoin ETF in near future will further drive the crypto market.
Bitcoin Price takes a Breather at $6,400
A few days back, Bitcoin bulls took the price to about $6,800 level. However, for the past two days, the Bitcoin price started making a descend. At the time of writing, BTC has been trading at $6,414 with 24-hours loss of about 3%. With a market cap of $112 billion, the daily trading volume of the leading cryptocurrency is at $4.49 billion.
After testing and yet again rejecting the resistance level, Bitcoin has found support at $6,400 mark. However, the technical indicators according to analysts reflect a further decline.
If we take a look at the below given Year-till-end (YTD) chart, the Bitcoin price has been constantly making higher lows and lower highs.
Since June end, Bitcoin has managed to trade above $6k level. As the year-end approaches and Bitcoin holds its $6,000 support line and bears bottom out the price, this could mean the downtrend would finally end, leading to the bulls.
Currently, BTC is about 67% down from its all-time high (ATH). And experts are already calling a bottom for the price.
Also, historically, at the year-end rally do tend to get into effect.
Regulatory actions affect crypto prices: Research
According to the latest research, Bitcoins and cryptocurrencies are still very much affected by the regulations. It states,
“While cryptocurrencies are often thought to operate out of the reach of national regulation, in fact their valuations, transaction volumes and user bases react substantially to news about regulatory actions.”
It also points out that due to the reliance on regulated financial institutions to operate, cryptos are within the reach of national regulation. It further shares,
“News events related to general bans on cryptocurrencies or to their treatment under securities law have the greatest adverse effect on valuations, followed by news on combating money laundering and the financing of terrorism, and on restricting the interoperability of cryptocurrencies with regulated markets. News pointing to the establishment of legal frameworks tailored to cryptocurrencies and initial coin offerings coincides with strong market gains.”
According to the report, even “cross-border spillovers can occur in response to regulatory events.”
On the regulatory front, Singapore and France are taking a positive stance on crypto and ICO market. Moreover, with Bitcoin ETF delayed last week, market sentiments moved accordingly but SEC and its officials are showcasing positive attitude towards Bitcoin that can be expected to get realized soon.