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Bitcoin bounces above $35,000 despite increased regulation

CryptocurrencyJun 28, 2021 08:55AM ET
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By Samuel Indyk

Investing.com – The price of Bitcoin briefly bounced back above $35,000 on Monday despite further regulatory scrutiny for the cryptocurrency industry.

Over the weekend, the UK’s Financial Conduct Authority banned Binance, the world’s largest cryptocurrency exchange, from conducting any regulated activity in the UK. In the consumer warning, the regulator also advised people to be wary of adverts promising high returns on cryptoasset investments or cryptoasset-related products.

Bitcoin initially fell on the news, hitting a low of around $30,200 on Saturday before rebounding above $35,000 today.

Cryptocurrency bulls will look at the bounce off the psychological $30,000 support level as further evidence that the recent sell-off may have run its course. Some have also suggested that increased regulatory scrutiny is proof that the industry is maturing.

On the other hand, the regulatory clampdown in the UK could be viewed as a sign of things to come, with the potential for further strict regulation from across the globe.

China has renewed its crackdown on the cryptocurrency industry in recent weeks, with a focus on mining activity. Last week’s action to shutter mining activity in Sichuan province helped briefly send the price of Bitcoin below $30,000.

Technical picture

To the upside, a firm break of $35,000 could open the door to the 50DMA at around $38,600 before a test of the all-important $40,000 level.

A break above $40,000 could then lead to a test of the 200DMA, seen around $43,600.

On the downside, support is seen at $32,000 and around $31,250 before the $30,000 level comes into play.

If a breach of $30,000 manifests itself into further selling pressure, some have argued Bitcoin could drop into the mid-$20,000s.

“One more push down to $30,000 might not hold given the number of times we’ve tested it and there’s only so much liquidity there,” said Vijay Ayyar of cryptocurrency exchange Luno.

“Post-$30,000 and we should probably see $24,000 to $25,000,” Ayyar added.

The price action of Ethereum has been similar with the world’s second largest cryptocurrency hovering around the key $2,000 level, but well below the all time high of $4,300 hit in May.

Bitcoin bounces above $35,000 despite increased regulation
 

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Comments (1)
Greg Nathan
Greg Nathan Jun 28, 2021 10:16AM ET
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Bitcoin is not a coin.  It is a code-protected microdot.  The pictures you see are of three tokens.  It's misleading for Bitcoin to call itself what it does.  The whole thing is hype and marketing.  Those who criticize gold because you can't eat it find Bitcoin even worse.  Not only can't you eat Bitcoin but you can't even melt it down and make some decent jewelry.  When you give up your cash for a Bitcoin where did it go?  If some influential personality says something about his company not accepting Bitcoin for payment of his product, down the value goes $35,000...  Bitcoin can go to zero too.  Fool with it if you want, but I'd have some allocated gold first before exposing myself to the high-risks of Bitcoin.  It is highly volatility, where the value of your investment is on a wave that goes up and down depending on the market for code-protected microdots, which are worth only what people will pay for them.  The Bitcoin token may or may not be a good conductor of electricity.
 
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