BITCOIN CONTINUES TO DROP AS JAPAN ENACTS NEW REGULATIONS
The price of Bitcoin continued the downward momentum started on Monday reaching an intraday low of $3820. This was lower than where it started the week at $4410. The main problem for the currency is negative sentiment due to the declines which have occurred over the past few weeks.
Yesterday, Japan announced that it will start forcing cryptocurrency exchanges to share data of its users in a bid to curb tax avoidance. This was big news for two reasons. Firstly, Japan is one of the most important cryptocurrency countries in the world. Secondly, forcing exchanges to share data goes against the whole idea of cryptocurrencies because it removes anonymity.
In other news, NASDAQ confirmed that it was planning to list Bitcoin futures in the first quarter of 2019. This was somewhat ignored by traders, however, due to past experience. In 2017, CME and CBOE listed the same futures fueling excitement among crypto users who expected the futures to boost volumes. Ultimately, this didn’t work because most traders took short positions leading to a decline in the price.
The BTC/USD pair is trading at 3822.90, which is below the weekly high of 4410. The pair seems headed towards the previous lows of 3513. This is supported by the double EMA and the RSI, which is currently at 41.