First, let’s remember Satoshi’s words: “We have proposed a system for electronic transactions without relying on trust”
Snapping back to reality and lest we forget, cryptocurrencies including Bitcoin, Litecoin and Dogecoin are alternatives to the government backed fiat currencies. It’s peer to peer, digital, not issued from a single source and entirely backed by the trust of the community. That’s why it’s trustless and secured not by the whims of politicians or policy makers as they like to call themselves but by complex mathematical formulas—often proof of work.
This is why the crypto market doesn’t need the SEC and other regulators, though rogue elements would anyway exist, the route for self regulation is secure when there is an independent market that’s not roped in anyway by the central bankers. Yes, there are millions and perhaps Trillions of dollars according to Tim Draper when institutions come in but they often tow in with the government who then use this to bait the market through excessive, innovative killing regulations. If anything, sticking to ownership, digital nature and code is law might perhaps be a safe route for cryptocurrencies.
So, while investors might have “over-reacted” to SEC Bitcoin ETF’s delays, we must also realize that Bitcoin and most coins are down more than 80 percent from 2017 peaks. The truth is that we don’t need the SEC and the rest of these government backed guys. They often mess things up and that alone irked Satoshi forcing him to design fiat alternatives, the Bitcoin. Now, for price the worst part is that the degradation might continue in coming days since this week will close as bears and perhaps even recording double digit losses from last week’s close.
Bitcoin (BTC) Technical Analysis
Week over week, Bitcoin (BTC) prices are down 20 percent in the last week alone and trending inside a descending triangle with strong support at the $6,000 mark. So, in essence what this means is that Bitcoin dropped $2,500 after week ending July 29 and in the process wiping out gains of a 30 day effort from mid June.
Now, at current spot prices, Bitcoin (BTC) is trading right at the $6,000 main support trend line and odds are we might see a break below $5,600 this coming week. When that happens, then our last Bitcoin (BTC) technical analysis points $3,000 as the next bear target.
On the bright side of things, should there be a reversal, then the only way for buyers to gain a footing is if they build enough momentum to push back prices above that main resistance trend line and print above $7,000.
At this frame, we have two key levels: the $200 support zone between $6,000 and June 2018 lows at $5,800 and $7,000, our immediate buy trigger line.
So, to simplify, as long as prices are caught in between current spot prices and $7,000, we remain bearish.
If they drop below $5,800 then we suggest moving locking in some profits and aiming for $4,500 and later $3,000. The only way this price projection will change is if buyers edge above $7,000. Before then, I recommend trading with the trend.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.