Cryptocurrencies fell to multi-month lows in the weekend as investors were trading in a low volume market and news about money laundering coming from Japan.
Bitcoin fell to its lowest level since November 2017 at 5,777, while Ethereum declined to 420.00 and Bitcoin Cash tested the 660.00 area on Sunday.
Japan orders crypto exchange to improve anti-money laundering rules
Japan’s financial regulators ordered cryptocurrency exchanges to improve rules to fight money laundering. The order would suspend the creation of new accounts while exchanges improve their practices on money laundering and terrorist financing.
“In order to maximize our efforts towards building a suitable service and improving on the issues identified, we have temporarily suspended account creation for new customers of our own volition,” bitFlyer said.
Bitcoin fell to a fresh 2018 low
Bitcoin was trading in consolidation mode after the June 22 decline from 6,720 to trade below the 6,000. However, following news from Japan about suspending new crypto accounts, BTC/USD fell to a fresh low since November 12, 2017, at 5,777.
BTC/USD bounced back from lows and it closed almost flat, but negative around 6,150. On Monday, Bitcoin is trading slightly positive at 6,160, 0.10% up on the day. Technically, the pair is bearish with moving averages aligned to the south.
MACD is pointing bearish too, but RSI is neutral in the daily chart. Volume is more significant on negative days.
As the pair wasn’t able to break above the 6,250 level, the downside remains on the table. If bitcoin gets back below the 6,000 area, it will focus on the critical 5,870 level and then the 5,550.
To the upside, the pair needs a break above the 6,250 and a close above 6,800 to spur bulls to buy. Then, a break above 6,900, will open the doors to the 7,200 and 7,300 levels.
Ethereum test dynamic support at 420.10
Ethereum performed a negative weekend as investors were concerned amid news from Japan and low volume. ETH/USD fell to its lowest level since April 12 at 420.00, at the same dynamic support line that is coming from July 2017.
Ethereum is opening the week at 448.10, 1.46% down on Monday. Since June 21, ETH/USD fell 18% from 550.00 to 445.00. Technically, indicators are worsening the situation for the bulls with moving averages pointing to the downside and the RSI leading to the south.
To the downside, if the pair breaks below the dynamic support of 425.00, Ethereum will find support at 400.00. Then, 365.00 will be the last frontier.
To the upside, Ethereum needs to recover the 475.00 area and then a close above 530.00 before making bulls believing in an uptrend. Above that, 560.00 is the natural resistance and then 630.00.
Bitcoin Cash below 800.00
Bitcoin cash is trading in consolidation mode following Sunday’s decline to 661.00 and posterior bounce to 750. BCH/USD is moving around 748.00 or 0.23% on Monday, opening the week with gains.
The pair is oversold, and it is showing bearish conditions with moving averages pointing to the downside. Negative days have more volume than positive sessions.
If the pair breaks below yesterday low at 660.00, BCH/USD will find next supports at 625.00 and the 600.00 area.
To the upside, 780.00 is the level to be broken by the BCH/USD before start believing on a recovery. Above that, 800.00 is vital resistance, while 830.00 and 930 will give its say on the cryptocurrency movement.