The price of Bitcoin (BTC) continues to trade in a sideways fashion between $10 and $11k as the recent market volatility subsides. The previous week’s heavy price action saw Bitcoin fall from $13,000 to $9,400 in a matter of days, leaving many investors rattled. Now, however, the volatility – a result of the late June parabolic rally – seems to have found calm in the mid-$10k range.
As the furor around Facebook’s Libra cryptocurrency begins to lose steam, traders are refocusing on the matter at hand. With the fresh wave of new buyers now exhausted, Bitcoin will need to consolidate for some time before another big move. Despite support proving strong at the psychological $10,000 level, some analysts still see further losses ahead.
Florian Gummes, a consultant at market analysis firm Midas Touch, believes a change on the stochastic oscillator could indicate an impending fall below $10k that would only find support at $9,200 or below. The prediction echoes that of a popular screenshot that’s been doing the rounds on Reddit lately, wherein an anonymous user posts his predictions for several monthly lows through 2019 to 2020. So far, the user has accurately predicted Bitcoin’s lows in both April and July. If the predictions continue to pan out then we should see a price of $16k for Bitcoin in October this year – a price level that has been forecast by several other analysts recently.
Exchange Giant BitMEX Under Investigation
In other news, the wildly popular cryptocurrency exchange BitMEX is under investigation by U.S. authorities for providing services to U.S. citizens without a proper license.
According to financial news service Bloomberg, The U.S. Commodity Futures Trading Commission (CFTC) has launched the investigation due to uncertainty regarding BitMEX’s regulatory compliance in the country. BitMEX, which is based in the Seychelles and is popular for offering 100x leverage, ceased its services to U.S. customers in January this year. However, it is believed that customers are able to circumnavigate the ban with the use of a VPN service.
The investigation is just one of many ongoing regulatory crackdowns in the cryptocurrency industry lately. Following Facebook’s ‘Libra’ cryptocurrency announcement in June, governments around the world have been scrambling to formulate some kind of regulatory framework in fear of missing the boat. While private corporate coins like Libra may have to succumb to regulation, Bitcoin will undoubtedly continue has it has for over a decade – decentralized, ungoverned and unregulated.
Bitcoin (BTC) is currently trading at $10,460 against the US dollar with a market cap of $186 billion.
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