Bitcoin was unable to consolidate gains above the 7,400 level and it closed Wednesday at 7,380; on the other hand, Ethereum didn’t extend advance, but it managed to close above the crucial 560.00 area.
Crypto bulls didn’t get the rally they were promised after Tuesday’s jump as currencies were undecided on how to read market news like the SEC charges on an ICO firm amid fraud, or a new bitcoin seize in South Korea.
South Korea seizes 191 bitcoin in a child pornography case
We all know that Bitcoin doesn’t have anything to do in a pornography case. It is all about the person who committed the crime; however, the name of the crypto king was related to the case that a high amount of related money was involved.
191 bitcoins, worth about $1.4 million, was seized by the South Korea government in a child pornography cyber crime case according to a local media Yohap News reporting. The accused was sentenced to jail time and a $640,000 fine. The prosecutor considered bitcoins as a property with value.
The government didn’t say what the plans are regarding the seized cryptocurrencies.
SEC charges Titanium with fraud for misleading partnerships
The Securities and Exchange Commission (SEC) charged Titanium Blockchain Infrastructure Resources with securities fraud related to an ICO procedure. According to the SEC, the company violated the antifraud and registration provisions in attempting raising $21 million in an ICO.
The SEC says that Titanium claimed it had relationships with Walt Disney Co and Action Alerts PLUS holding PayPal as a way to get the favor of investors. “This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects,” said Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit.
Shiller predicts the Bitcoin extinction as soon as this year
“Bitcoin won’t look anything like it is today. It will have a different name, if it exists,” said Robert Shiller, Nobel Prize-winning economist and Yale professor.
Professor Schiller recalled what happened in 2014 when bitcoin topped $1,000 and then it lost 80% of its value. Something similar occurred last December when BTC reached the 20,000 mark.
It looks like a bubble.
“The one scenario is that something like what happened after 2013 when bitcoin topped $1,000 and then lost 80 percent of its value. It looked like bitcoin was just fading away,” Schiller added. “It’s so hard to predict these things.”
Bitcoin failed to keep the 7,400 area
Bitcoin performed an engulfing candle against the US Dollar on Tuesday, and even the pair closed right at the 7,400 dynamic resistance; however, the BTC/USD wasn’t able to hold gains on Wednesday and it lost the position before closing the day at 7,38, where it is trading now.
BTC/USD is trading flat on Thursday at 7,383. The pair remains below the 7,400 area and it seems that sentiment in the short term turned negative again. In the big picture, however, anything changed while indicators point to the south.
To the downside, if the pair consolidates levels below the 7,400, it would open the doors for more weakness with the 7,000 area as the primary support. Below that, 6,500 and the crucial 6,010.
To the upside, BTC/USD needs a close above the 7,660 area to confirm a possible recovery. In this case, next resistances are at the 8,000 and 8,600 regions. Then, 9,000, and 9,500.
Ethereum didn’t extend advance, but it held the levels
ETH/USD performed a consolidation day on Wednesday as the pair keep highs of Tuesday and it closed above the 560.00 area. Ethereum is now trading at 563.00, 1.10% positive on Thursday.
Ethereum is fighting the crucial 560.00 area and indicators are showing a possible recovery; however, 20-day moving average just crossed below the 50-day MA on Thursday.
If the pair stays above the 560.00 area, it will find next resistances at the 600.00 and 645.00 areas. A close above the 20 and 50 days moving average would be a signal that more bullishness is expected.
To the downside, the cross needs to get back below the 560.00 area to demonstrate that the previous bounce was a failing break. Then, 500.00 will be the next significant area, and nothing else is in between there and the 400.00 area.