10:16, 11 October

BTCUSD - Settles Right Around Key $6500 Level

In the last few weeks Bitcoin (BTCUSD) has been content to trade right around the current key level of $6500, but mainly receiving minor support from the level. A few weeks earlier it was trading below the $6500 level and trying to stay in touch and during that time, it made a couple of attempts to break higher however it was sold off. Earlier last month 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 break away from this level one way or the other.

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.

The International Monetary Fund (IMF) has published a key report entitled the World Economic Outlook in which it cautions about Bitcoin and Blockchain.The report cautioned that the Bitcoin and Blockchain boom facilitating the “rapid growth” of cryptocurrency assets could create “new vulnerabilities in the international financial system.”The IMF also suggested that the recent explosion of interest in crypto assets and the previous surge in Bitcoin’s value may contribute to a weakened global financial system overall.The IMF said, “Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services.Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”Just last week in their stability report, the IMF warned about the risks saying, “Despite its potential benefits, our knowledge of its potential risks and how they might play out is still developing.Increased cybersecurity risks pose challenges for financial institutions, financial infrastructure, and supervisors.”