Bullish View
- Set a buy-stop at 35,394.
- Add a take-profit at 39,000.
- Set a stop-loss at 33,000.
Bearish View
- Set a sell-stop at 33,000 and a take-profit at 30,000.
- Add a stop-loss at 35,000.
The BTC/USD price bounced back even as global regulators continued to warn about Binance, the biggest exchange in the world. Bitcoin is trading at $34,300, which is 13% above the lowest level on Saturday.
Binance Problems Mount
Binance is the biggest cryptocurrency exchange in the world. It is also an embattled company. Earlier this month, the US Department of Justice and the Internal Revenue Service (IRS) launched an investigation into the company. They accused it of having inadequate know your customer (KYC) and anti-money laundering (AML) procedures.
A few weeks later, the German financial regulator, Bafin, warned the public against the firm. This happened on the same day as the Japanese regulator warned about the company. This week, the UK Financial Conduct Authority (FCA) announced that it was banning the company from the country. The agency also warned the public against the company. On Monday, UK customers were unable to withdraw funds using a system known as Faster Payments.
The problems facing Binance pose systemic risks because of how popular the company is. At its peak, it processed cryptocurrency worth more than $1.6 trillion.
The BTC/USD is also tilting upwards after it received support from a Mexican billionaire. In a tweet, Ricardo Salinas Pliego said that his company was working to start accepting the currency. This is notable since he runs one of the biggest banks in the country and is relatively close to the current Mexican president. He is also the second richest person in Mexico.
The BTC/USD is also reacting to news that hash rates have started going up after falling sharply last week as China intensified its crackdown on mining. This is a signal that miners in other countries are stepping in place of their Chinese counterparts.
BTC/USD Technical Analysis
The Bitcoin price is currently at $34,300, which is substantially higher than last week’s low of $28,880. It is also slightly above the 25-day and 50-day exponential moving averages (EMA). Further, the coin is slightly below the important resistance level at $35,395 and is slightly above the 38.2% Fibonacci retracement level. Therefore, there is a more bullish signal that will emerge when the pair manages to move above this resistance. If this happens, the next key level to watch is the resistance at $29,000. On the other hand, a drop below $33,500 will invalidate this prediction.
