Rumors that G20 ministers gathering in Argentina could come up with restrictive measures on Bitcoin trading and Google’s decision to ban cryptocurrency and ICO ads pulled Bitcoin prices down to $7600 last week. This level is the lowest in five weeks.
G20 ministers did not impose any restrictions on Bitcoin trading however they have concluded that cryptocurrencies create risks for consumer and investor protection besides being used for money laundering and financing terrorism.
As another setback for Bitcoin and cryptocurrencies, Google announced that the company is going to update its ads policy on financial services on 2018 June to discontinue advertisement for cryptocurrencies and related content.
In addition to G20 rumors and Google’s ban, the double top pattern which I have mentioned on my previous post brought technical sellers into the market and created more pressure on Bitcoin prices.
Will the Recovery Contiune?
Bitcoin has been recovering from the lows in last few days. Up to $9000 from $7600 where 200 days moving average crosses. The recovery may turn into a rally in case the Bitcoin prices break $10000 level.
There awaits a bumpy road for Bitcoin prices between $10000 – $9300 region where significant resistance levels exist. Those levels include $9300 chart support which acts as a resistance now and $9600 where 50 days moving average lies. In case Bitcoin crosses those key resistance levels and breaks above $10.000, I would consider going long targeting $11.500.