The price of bitcoin has mainly shrugged off the bearish news from the U.S. where the SEC shows signs of ramping up pressure on the ICO market. On Wednesday, the regulator issued scores of subpoenas and information requests to ICO-related companies. BTCUSD retraced following the report, but managed to keep above the key $10,000 mark and regained the bullish bias, trading around $10,600 on Thursday.
The cryptocurrency market seems to be gradually getting adjusted to the idea that the industry is going to be regulated globally and that this is positive for its longer-term future as a more healthy market will attract more participants and will be able to build trust among traders eventually.
Technically, bitcoin looks set for another attempt to regain the $11,000 level which keeps bulls in control since February 21st. This scenario will remain relevant as long as the pair keeps above the $9,200 support. Overall, since the mood in the crypto space has improved over the last month, more traders may get attracted to the market and therefore follow a “buy on dips” strategy in the medium term on the back of lower market volatility and more sustainable BTCUSD trading.
By Helen Rush
Senior Analyst at Capital Markets