Bears and Bulls Continue to Battle Over Bitcoin Price
The price of bitcoin has fallen since our last piece, this time hovering around $573 at press time. Some feel this was to be expected: things haven’t taken much of a turn since the Bitfinex hack, and news regarding Russia’s latest stance on bitcoin has been slow to hit home.
Continued Uncertainty in Bitcoin Markets
“Overnight action was relatively flat, and we didn’t manage to get into any positions with the range we had highlighted.”
Since last week, no significant changes have occurred in bitcoin’s status, but the analyst remains hopeful:
“Price did carve out a relatively steady range, meaning today we should see some nice reactive action if we get a breakout. So far this week it’s been pretty easy trading – a couple of scalp breakout entries and some intra-range action, with more take profits than stop losses. Let’s hope things continue to run as smoothly moving forward.”
Others, however, differ in their position. A separate analyst from the same source sees bitcoin’s downward spiral continuing, and all investors can do is ride out the storm:
“Bitcoin… could be ready to resume its slide soon… The 100 SMA is below the longer-term 200 SMA, confirming that the path of least resistance is still to the downside. In addition, bitcoin price is testing resistance at the 200 SMA dynamic inflection point, which might be enough to keep gains in check. If so, bitcoin could slide back to the previous lows around $560-565. Stochastic is already indicating overbought conditions, also confirming that bears are about to take control of price action once more.”
Such an argument contradicts our previous price piece, which suggested a bull-run looming on the horizon. The consensus is that bitcoin will continue to sink for the time being, but the author did offer a ray of hope, saying that should the “bulls put up a strong fight,” the price could soon jump back to $590.
One potential development that may give way to a bitcoin spike is California’s recent hold on what’s been dubbed a “West Coast BitLicense.” The Golden State has been hell-bent on following in New York’s footsteps since late last year. That said, Bill AB-1326, California’s version of the Big Apple’s regulatory document, has now been put on hold until January 2017.
Mark Farouk of the California State Assembly Committee on Banking and Finance comments:
“It is dead for this year… We couldn’t find consensus to come up with the right solution by the end of this year’s legislative session.”
Apparently, the bill has faced much opposition from digital currency advocates and wasn’t able to take the “congressional stronghold” regulators were hoping for. While arguments are set to resume in five months, this could give bitcoin a period of recovery on the west side of the market
Who will win the fight over bitcoin, the bears or the bulls? Post your thoughts below!
Images courtesy of Calvin Ayre, Bitcoinist.net.