Bitcoin [BTC] Price analysis: Bulls probably sold out, FinCEN will announce "unfavorable" guidelines
President Trump is not a big fan of cryptocurrencies. He has his reservations for the alternative, the currency. And that is understandable since it is in a Making America Great Again campaign, and that means promoting the USD.
The dollar, like Bitcoin, taking into account recent political upheavals, has evolved to be a reliable store of value.
The emerging role that Bitcoin plays should be uncomfortable for central banks and major economies.
The US FinCEN intervention. UU.?
The United States could be taking action very soon. While they may not ban currency trading like China, they can implement strict rules in the coming days.
According Steven Mnuchin, the Secretary of the Treasury of the United States, FinCEN, one of the many regulators in the country, It will soon publish new guidelines and requirements regarding Bitcoin and cryptocurrencies.
“We are about to implement some new and important requirements in FinCEN. We want to make sure that technology advances, but, on the other hand, we want to make sure that cryptocurrencies are not used for the equivalent of the old bank accounts of Swiss secret numbers.
FAFT and LocalBitcoins
The announcement comes at a time when the FAFT rule was activated for less than a month, dealing with cryptocurrency exchanges between peers, including LocalBitcoins.
The Helsinki-based quartered exchange, without disclosing details, suspended merchant accounts in several countries, including Pakistan and Nigeria, citing the need for "additional due diligence."
BTC / USD price analysis
Till the date, Bitcoin price It has risen 4.5% as bulls slow down.
Still, earnings have been almost perpendicular, and prices are clearly in an uptrend as BTC sells above $ 10,000.
According to the chart, prices are getting cold and it can be an opportunity for smart operators to get out of their lengths, in anticipation of a decline towards the average BB, or the 20-day moving average.
While it would be contradictory and even risky, it is practical because of the grazing mentality.
This would be invalidated if prices exceed $ 10,500 over the weekend.
Such a move would open doors for $ 14,000 less than Three months before halving.
On the other hand, a correction would see BTC quickly return to the breakout level at $ 9,500.
Graphic courtesy of Trading View – Coinbase
Disclaimer: The opinions expressed are those of the author and are not investment advice. Trade in any way implies risk. Do your research.