The weekend was rather calm for Bitcoin and other cryptocurrencies. As Monday trading begins, the trading pair is consolidating within a narrow range and is facing new triggers. Changing hands at $6,430, the trading pair is losing 1.5% of its value daily. After strong movements last week, Bitcoin is range bound and will require new triggers to start moving again.
Bitcoin Price Analysis for June 18
Looking at the chart from a long-term perspective, there is little to no recovery momentum left. The price is still heading downside although it is within the upper channel. There is strong resistance at $6,900 and $7,000. If it is cleared, the upside move may go as high as $7,683 which will be the 25.5% Fib retracement level. If it doesn’t clear, the fall might go low with support at $6,000. If there is a movement below this level, the price will fall lower to $5,873 and even $4,000 long term.
Even if Bitcoin had a strong bounce last week, it has been unable to sustain it. The price is being consolidated inside a bearish flag pattern. If it breaks below the support, the bearish trend will continue long term.
The 100 simple moving average is lower than the 200 simple moving average. This means that the path with the least resistance is downside. The selloff may not stop anytime soon. On the plus side, the bearish momentum is weakening.
Bitcoin Struggles With Regulators
After BitGrail, an Italian cryptocurrency exchange, was hacked in February, the Italian government seized the Bitcoins left in the account and the company refused to accept responsibility for the hack. The company laid the blame on Nano developers claiming that there were bugs in the code. The Nano team denied and the exchange was eventually banned from operating. All the Bitcoins on the platform were seized by the judicial authorities.
The next few trading sessions will determine if the bearish momentum will resume.