BTCUSD is extending its bearish move on Friday, finishing March with losses of 40%. The downside pressure has intensified following a break below the $8,000 mark, and after failed attempts to regain this threshold, the bulls had to give up. The price was testing early-February lows below $6,600 in the morning, now and attempts to cut losses and climb back above $7,000 which is the immediate local resistance.
The regulatory pressure on the industry has increased substantially recently. In another bearish sign, two more Japanese crypto exchanged had to cease their operations this week as both companies failed to secure a license from the nation’s Financial Services Agency. And more to come, with the regulator issues warnings to other trading platforms. The “Japanese factor” is a substantial blow for the cryptocurrency market as this is one of the countries that fuelled the crypto mania last year.
Twitter’s decision to block crypto ads following similar steps from Google and Facebook, and Bank of Montreal’s resolution to ban its customers from using accounts to transact with cryptocurrency merchants, add to the gloomy short-term picture. Against this background, the downside risks for BTCUSD persist. At the same time, bitcoin will hardly severely extend its current bearish wave as some buyers may start to emerge and prevent it from crashing below $6,000 where fresh early-February lows lie.
By Helen Rush
Senior Analyst at Capital Markets