- Bitcoin is striving and failing on this week to break above major technical hurdles, moving lower toward a key inflection point instead.
Bitcoin has been flirting with regaining the $40,000 mark all week but has failed to do so, showing strong resistance at that threshold. In addition, the coin has tried to close above its 100-day moving average over the past four sessions but is struggling with that as well.
Meanwhile, the coin seems to approach an inflection point shortly - its 50-day moving average, its latest price, and its 100-day moving average seem likely to converge.
"Bitcoin is back in negative territory after prices ran into a wall of resistance around $40,000, said Craig Erlam, a senior market analyst at OANDA, in a note. 'Perhaps profit taking hasn't run it's course just yet. He sees $36,000 as a key level to watch - it coincides with resistance seen in late June and early July and also represents a 50% return from the move from the recent lows to highs.
On Thursday evening, Bitcoin closed as much as 6.1% of new york-traded value to $37,326. That level is its lowest level in less than a week. It broke a three day losing streak Wednesday. The Bloomberg Galaxy Crypto index, which tracks some of the biggest digital assets, fell a similar amount.
Though recent comments by billionaire Elon Musk and Ark Investment Management LLC's Cathie Wood, as well as speculation over Amazon.com Inc.'s possible involvement in the cryptocurrency sector, had helped Bitcoin rally in recent days. It has since retreated as it comes into greater focus for regulators. Though some strategists said it was due for a pullback, others cited a new push by Congress to require crypto brokers to report transactions to the Internal Revenue Service - a move that could create some unwelcome tax bills.
While, the U.S. Securities and Exchange Commission Chairman Gary Gensler signaled that regulators may be more open to a Bitcoin ETF if it was based more on futures not the cryptocurrency itself. A lot of crypto fans, many of whom had been hoping for a different structure, were disheartened by the news.
This post was first submitted by Gensler on 8 October 2018, as Bitcoin Futures ETF Filing Land.
Carter Henderson, the portfolio manager at Fort Pitt Capital Group, said by phone: 'We don't advise any of our clients to go into it, "Right now, it's too unknown of a space to be in and two, the volatility of wealth management clients to be in an asset class like that doesn't fit the risk profile.