Bad day for cryptocurrencies on Monday as major cryptos declined due to profit taking following a multi-day rally. The 20-day MA rejected Bitcoin; while Ethereum lost the 600.00 mark and Bitcoin Cash dropped to the 1,100 area.
Indonesia approves crypto futures trading
The Futures Exchange Supervisory Board of Indonesia stated that cryptocurrencies should be treated as commodities and it can be traded on the country’s futures exchange. Bank Indonesia does not recognize cryptos as payment instruments.
According to the Jakarta Post, the supervisory board decided cryptos would be commodities at the bourse. “The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse,” said the head of Bappebti market supervision and development bureau Dharma Yoga.
In this framework, the government of India will issue a supporting regulation to expand the Bappebti decision, including prevention of money laundering, taxation, currency exchange companies and terrorism financing.
Bitcoin not that popular in Google search
The searches of the term “bitcoin” collapsed 75% in 2018 according to a Google trend research published by CNBC Monday.
Bitcoin has lost its ability to capture interest on the internet, “Searches for the term “bitcoin” have dropped more than 75 percent since the beginning of this year and roughly halved over three months, according to research from Google Trends,” wrote Kate Rooney, Journalist at CNBC.
Bitcoin has declined 50% so far this year, not that much is compared to the drop in the search for the word bitcoin in Google. The popularity of bitcoin in the searches fell from 37 on January 1, to 9 on June 2, in a measure of 100, when 100 is the top level.
Bitcoin got a rejection at 7,765, back below 7,500
The crypto king is extending losses on Tuesday after closing Monday with a significant decline against the US dollar as the BTC/USD dropped 3% to 7,480. The pair is now trading almost flat.
Bitcoin got a rejection at the 20-day moving average level of 7,740, with the pair retracing all weekend gains. BTC/USD closed below the dynamic line coming from September 2017, now at 7,600.
BTC/USD is now testing the 7,400 area, if the pair manages to break below that price, it will 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, bitcoin needs to recover first the dynamic line at 7,600 and then break above the 20-day moving average at 7,700. A break above that level would open the doors to the 7,950 area and then the 50-day moving average at 8,480. Then, the pair would face the dynamic resistance coming from January 2018.
Ethereum falls on profit taking, back below 600.00
Ethereum closed Monday with a decline as a confluence of profit taking and the 20-day moving average adding pressure made the pair going down. ETH/USD lost 4.2% on the day to close at 591.00.
ETH/USD is trading slightly positive on Tuesday, as the pair managed to extend the bounce from Monday lows at 576.00. If the cross manages to stay above the 580 level, it will need to break above the 20-day MA at 610.00 and then the 630.00 area to confirm the recovery.
Above the 630.00, it will find the immediate resistance at the 50-day moving average at 650.00; then the 200-day MA at 710.00.
To the downside, if the pair gets back below the 580.00 level, it will open the doors to the 560.00. Then, 500.00 will be the next significant area, and nothing else is in between there and the 400.00 area.