Search ForexCrunch
  • “You are taking on a lot of risk with no recourse if things go wrong,” Tony Richards told the Australian Business Economists.
  • Technical indicators signal higher corrections in the short-term.

Bitcoin price is still trading within the bullish flag pattern explored in an earlier price analysis. The price is still strongly bearish although it is supported at $6,140. BTC/USD has tanked at least 1% on the day, besides it opened the trading session at $6247.95, but it is now changing hands slightly above $6,180.

The digital assets introduced another new perspective of money in the global economies. However, many central banks still maintained that Bitcoin and other virtual currencies can be utilized as a form of money. The Reserve Bank of Austria (RBA) still holds that Bitcoin is not mature enough to be used as a currency. The Payments Policy head at RBA, Tony Richards said in a comment:

“Indeed, even if one is quite skeptical of whether Bitcoin will have a significant role in the economy in the future, I think it is hard to avoid some admiration for its design.”

Richard was talking to Australian Business Economists on the risks involved with trading digital assets.  “You are taking on a lot of risk with no recourse if things go wrong,” he reckoned. He also touched on the recent attacks on cryptocurrency exchanges and  including the Parity Hack. Richard  said:

“These risks acknowledged, cryptocurrencies and distributed ledgers are fascinating developments both from a payments and a broader economic perspective. There have been a lot of cryptocurrency hacks and there are a lot of risks there. With Bitcoin, the only regulation to date has been AML. There hasn’t been any regulation in any country, that I’m aware of, that speaks to the question of investor protection,”

Bitcoin price analysis

At the moment, there is a weak bullish momentum that is shaping up on the chart. The technical indicators like the stochastic and the RSI are sending bullish signals in the short-term. The gap between the 100 SMA and the shorter term 50 SMA is narrowing to confirm the upward momentum. $6,200 is a key resistance (intraday) but $6,300 is a significant hurdle towards $6,400. The 61.8% Fib retracement level with the last swing high of $6,725 and a $5,777 is providing immediate support at $6,140. The short-term bullish flag pattern will also offer support above $6,100.

BTC/USD 15′ chart