Bitcoin Consolidates Near $12,000
Shain Vernier • 1 min read
The extreme volatility of mid to late-June has yet to subside in Bitcoin (BTC). Daily ranges remain significant as traders attempt to establish an area of fair value for the crypto giant. The past 24 hours have brought a rapid selloff, driving values south of $12,000. However, the market appears to have stabilized, with intraday charts now showing consolidation between $11,500 and $12,000.
It may be a simple coincidence, but Wednesday afternoon’s sell-off in BTC began shortly after FED Chairman Jerome Powell addressed Facebook’s new Libra coin. Powell stated that Libra raises “serious concerns regarding privacy, money laundering, and consumer protection.” He also alluded to the formation of a new group at the FED tasked with examining Libra.
Ultimately, any news of regulation continues to be bad for Bitcoin and cryptos in general. This correlation has plagued the cryptocurrency markets since inception and the trend is alive and well.
Bitcoin Sells Off, Holds Firm In Bullish Territory
Since Wednesday’s sell-off, Bitcoin has put in a solid rebound. For July BTC futures, prices are well off of intraday lows and back on the doorstep of $12,000.
Overview: The most striking observation from the chart above is the size of late-June and July’s daily ranges in comparison to those of May and early-June. No doubt about it, participation is heavy and volatility high. If this becomes the norm for the remainder of the year, BTC has a decent chance at revisiting $20,000.
For now, a bullish bias remains valid for Bitcoin. Prices are above daily support, and more importantly, the $10,000 threshold. Until we see a washout of the $10,000-$9,500 area, holding longs isn’t a bad way to play the action.