Two technical gauges are pointing to a potential drop in the price of Bitcoin.
According to Bloomberg, BTC has fallen below the lower limit of the GTI VERA Band indicator – a sign that bulls may be running out of steam. The leading cryptocurrency has also slipped below its 50-day moving average support, which could signal an end to the uptrend that brought Bitcoin to $14,000 a month ago.
In a new note to clients at Miller Tabak + Co., equity strategist Matt Maley says regulatory pressure on Bitcoin and crypto assets is likely to continue as the US presidential elections heat up.
“[Bitcoin] stands at a key technical juncture. [Regulatory scrutiny] will become an even more prominent issue (much more prominent) once we move past the summer recess for Congress and into the meat of the 2020 election cycle.”
At Tuesday’s Senate hearing on crypto and blockchain regulation, Republican Mike Crapo said he doubts the US would be able to successfully implement a ban on Bitcoin and other cryptocurrencies.
“If the United States were to decide – and I’m not saying that it should – if the United States were to decide we don’t want cryptocurrency to happen in the United States and tried to ban it, I’m pretty confident we couldn’t succeed in doing that because this is a global innovation.”
Circle CEO Jeremy Allaire agreed, saying governments around the world will have to cope with the challenge of integrating and supporting crypto assets and blockchain technology.
“I think the challenge that we all face with this is some of these cryptocurrencies – they’re literally just a piece of open-source software. There’s nothing else.
It exists on the internet, it’s open-source software, anyone can implement it, it runs wherever the internet runs, and these have a monetary policy where these assets are algorithmically generated…
That is a challenge that every government in the world now faces – that money, digital money, will move frictionlessly everywhere in the world at the speed of the internet.”
Bitcoin is up 3.12% at $9,789 according to the latest data from CoinMarketCap at time of publishing.