Bitcoin remains in consolidation mode after failure to hold above $10,000. The recovery attempts look too timid this week, but the currency remains on hunt for the psychological resistance. The price ran into offers around $9,400 on Tuesday, and settled just above the $9,000 threshold today. Interestingly, the digital currency has mostly shrugged off a fresh portion of negative news. In particular, following Facebook’s lead, Google is reported to ban cryptocurrency and ICO ads starting from June. Meanwhile, Thailand plans to impose a 15% withholding tax on gains from cryptocurrency trade. Later this month, the government will introduce a law to regulate cryptocurrencies and ICO.
A limited response from the BTCUSD pair signals the digital asset is getting more immune to regulatory news as traders learn to take the gradual legitimization for granted and hope that current crackdown is good for the longer-term future of the industry.
Bitcoin remains somehow unsettled, though the volatility continues to decline. In the short term, BTCUSD will likely continue to fight for the $10,000 level, but there are few chances for a decent and sustained growth at this stage.
By Helen Rush
Senior Analyst at Capital Markets