11:09, 20 September

BTCUSD Consolidating Under Resistance Level at $6500

In the last few weeks Bitcoin (BTCUSD) has consolidated in a narrow range right under the current key level of $6500. It made a couple of attempts to break higher however it has been sold off. Only a few weeks ago Bitcoin fell very sharply from a one month high near $7500 and quickly settled under $6500. The $6500 level has firmly established itself as a level of significance and the markets will be watching closely to see if it can regain lost ground and get back above this level.

In the second half of July, BTCUSD enjoyed a strong surge higher moving through the key $6500 level and to the two month high. May and June saw Bitcoin fall strongly losing almost 40% of its value in that short period, from the peak near $10000 in early May to trading levels just below $6500. Throughout April, BTCUSD again rallied well off support at $6500 to that recent approaching $10000, however these gains have been few and far between in 2018.

In December the price of one bitcoin (BTC) reached a new all-time high of $19,783.06, according to Coindesk. To say that BTCUSD has struggled this year is an understatement. For the most part it has formed lower peaks and lower troughs. It is the $6500 level than many market participants are watching as BTCUSD has repeatedly bounced off this level.

In talking about cryptocurrencies, the UK Treasury select committee have issued a report stating that consumers were left unprotected from an unregulated industry that aided money laundering, while the government and regulators “bumble along” and fail to act. The MPs on the Treasury select committee have said that Bitcoin and other cryptocurrencies are “wild west” assets that are in urgent need of regulation as they expose investors to a litany of risks.The chair of the committee, MP Nicky Morgan, said the current situation was unsustainable.Morgan said, “Bitcoin and other crypto-assets exist in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks.Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced.” The committee suggests that at a minimum, regulation should be introduced to add consumer protection and counter money laundering, as currently cryptocurrencies are not covered by the City regulator or the Financial Conduct Authority (FCA).