Bitcoin Bears Looking for A break Below 8,310
After repeated attempts to breach the 11500 price mark, Bitcoin prices suffered a decline today as the SEC case against the BitMEX exchange was brought back into the limelight. SEC Commissioner Hester Peirce said that the case the Commodities and Futures Trading Commission has brought against the BitMEX exchange is a clear message to the exchange and the industry at large on the consequences of not abiding by KYC/AML regulations. Peirce made in a recent podcast session on Unchained Podcast.
Recall that in an official release that was dated October 1, 2020, the CFTC charged five entities and three individuals, including the BitMEX exchange owners, of various offences it alleges breached anti-money laundering regulations. The CFTC also accused the firm of doing business with US customers. CFTC regulations prohibit the conduct of trading activities by US citizens on exchanges and platforms not registered with the CFTC.
That release precipitated a selloff on the BTCUSD pair. The pair later recovered but has declined slightly as the SEC Commissioner doubled down on the resolve of the US authorities to rid the market of companies it accuses of not obeying its stringent regulations.
Following last week’s break of the symmetrical triangle on the daily chart, Bitcoin prices were able to take out the initial supply zone close to the 11,400 price level. However, buying pressure has withered, and the price action was unable to get to the significant supply zone at 12,000. Price has pulled back and is now testing support at 11,430.
A breakdown of the current zone would allow Bitcoin prices to drop towards the 10930.82 price level, which is the next support target. 10465.78 and 10290.44 are also possible support targets for the future if price decline continues.
On the other hand, if price finds support at the present zone, then a push towards 12000 could be on the cards. However, only a clear break of the August 17, 2020 highs at 12473.00 will allow price to target the 12824.54 resistance, formed by the July 9, 2019 high.
