Bitcoin flat in a quiet market, waiting for an explosion

Chris L
Category:  Financial News
Cryptocurrencies are trading sideways this week as investors are waiting for a catalyst that would push pairs outside of their comfort zone. Bitcoin is the most likely pair to move at first as technical conditions are set. 

Bitcoin is trading 0.77% down on the day at 6,622.2 as investors are selling the crypto king following a break down of a short-term rising channel pattern at 6,595. In the last days, BTC/USD has been moving in a small range between 6,450 and 6,750. 

According to FXStreet Analyst Yohay Elam, there is a "textbook explosion waiting to happen" in BTC/USD as "the technical picture is fully balanced, a situation which implies an explosion."

According to Elam, the cryptocurrency will take a direction very soon with a quick and sharp move. "Downtrend resistance is more significant than uptrend support as it touched the price more times and began earlier," Elam said in a recent article. 

On the other hand, former Fortress hedge-fund manager Michael Novogratz said on stage at the Economist Finance Disrupted that he doesn't "think it breaks $9,000 this year," talking about bitcoin. 

Previously this year, Novogratz declared that the crypto king would hit $40,000 in 2018, but now he sees that outcome as hardly possible. The analyst now thinks Bitcoin will recover above $10,000 by the end of the second quarter of 2019 as institutional investors will flood with money the crypto market. 

As per technical levels, next resistance seems to be at 6,750, above there, please check the 6,830 double top and then the 200-day moving average at 7,260. To the downside, 6,500 is the first support, then 6,130 and 5,860. 

Middle East first cryptocurrency exchange licensed by a central bank

Rain Financial is planning to open the first cryptocurrency exchange licensed by a central bank in the middle east according to a recent note published by CoinDesk. "Rain aims to offer both a brokerage for retail crypto investors and an institutional platform along the lines of Coinbase Pro in Silicon Valley," said the report. 

The exchange will be based in Bahrain, the Persian Gulf. "Rain Financial has opened its public waiting list after a year in the Central Bank of Bahrain's fintech sandbox." Khalid Saad, CEO of Bahrain Fintech Bay, a non-profit co-working space for startups said that "there's no cryptocurrency exchange in the region that is officially regulated. Hopefully, Rain will be the first one."
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