Bitcoin has shot past the $9,000 mark once again, but it’s still facing heavy resistance.
Bitcoin Is Doing Better, but It’s Still Struggling
The number one cryptocurrency by market cap has been struggling as of late thanks to rising fears of the coronavirus, which has spread throughout most of Asia, as well as parts of Europe and North America. More than 2,000 deaths have been recorded thus far, while tens of thousands of other individuals remain infected at the time of writing.
The currency fell from over $10,000 to the mid-$8,000 range within a week but has since begun springing to life again. While it has yet to recover fully, the currency has begun to advance into the low $9,000 range thanks, in part, to India’s removal of its two-year long crypto ban, and the implementation of a new digital currency law in South Korea that will potentially make crypto activity far more legitimate and mainstream.
India’s ban allowed users to continue trading digital currencies. However, it placed heavy limits on financial institutions and banks and prevented them from offering their services to crypto and blockchain-based ventures. The removal of such a ban is likely to put India at the forefront of the digital asset race.
In addition, South Korea’s new law will require all bitcoin and digital currency businesses to adhere to know your customer (KYC) laws and ensure that all crypto customers’ identities are verified, thereby limiting money laundering schemes and other illicit activities.
At the same time, bitcoin is still encountering a few solid barricades, and analysts say it’s got a hard road ahead despite its recent gains. Joe DiPasquale – CEO of the cryptocurrency hedge fund manager Bit Bull Capital – explained in a statement:
Moving forward, bitcoin will need to face the 50-day moving average, which is acting as a resistance level at $9,300. Only after breaching this resistance and then re-testing it for support can bitcoin set the foundation to tackle $9,500, $9,800, and then $10,000.
He further comments that while the cryptocurrency faces heavy resistance at the $9,300 mark, it’s nothing compared with the blocks it will experience at $9,500.
Bitcoin Hasn’t Gone Full Bear
Adding to this sentiment is Kiana Danial, CEO of Invest Diva. She agrees that bitcoin is likely to face hardcore resistance at these levels, though she believes that the bulls have retained moderate control over where the asset will go. She comments:
Based on the Ichimoku indicator, bitcoin did not fully turn bearish in the recent pullbacks.
This is a positive sign in that bitcoin is likely to return to its “old self” once fears of the coronavirus begin to die down. This recent drop is likely a temporary reaction to market circumstances, but bitcoin still appears lodged somewhere in green territory.
