Bitcoin is Displaying Early Hints of Another Rally

Bitcoin (BTC) might actually be forming a short-term bottom near $8,400 against the U.S. dollar. But still, BTC needs to go up above the 100 hourly SMA and $8,800. And this is to begin a new increase.

In the previous week, investors saw a firm fall under the $9,000 support in Bitcoin against the U.S. dollar. Then, BTC tried a couple of times to recover. However, it failed and settled below the 100 hourly simple moving average.

On the other hand, it looks like the price is searching for significant buying interest near the $9,400 and $9,500 levels. The latest low formed at almost $8,403, and the Bitcoin price is recently correcting higher.

In addition to that, it is trading over $8,450 and $8,500 levels. Also, on the hourly chart of the BTC/USD pair, there was a break above a key bearish trend line with resistance near $8,575. Then, it has opened the doors for more gains over the $8,600 level.

Now, the pair is trading near the 50% Fib retracement level of the latest drop from the $8,821 high to $8,403 low. On the upside, an initial resistance showed near the $8,660 level and the 100 hourly simple moving average.

Aside from that, the 61.8% Fib retracement level of the recent pullback from the $8,821 high to $8,403 low is also almost in the $8,660 level to prevent gains. There is a chance that Bitcoin price increased above the $8,700 level and the 100 hourly SMA. If that happens, there are possibilities of a decent upward move.

Then, the following key resistance is near the $8,800 area, above which the bulls might take control. In the stated bullish scenario, the price might actually bounce back above $9,000 or even $9,200 in the next sessions.

The Downside

There are also chances that Bitcoin fails to surge above the $8,700 level or the 100 hourly SMA. If so, there will be a risk of another bearish reaction. On the downside, there are two key supports, the $8,500 and $8,400.

Also, a downside break under the $8,403 low might end up putting the price towards the next set of important supports near $8,200 and $8,000.

Japan

Meanwhile, the Japan Virtual Currency Exchange Association (JVCEA) is the official self-regulatory organization for the crypto industry in Japan. On March 2, it revealed that three additional companies have registered as second-class members.

As reported by the JVCEA, Coinbase, Digital Asset Markets, and Tokyo Hash have registered. The second-class members with the agency can register as cryptocurrency exchange companies, or businesses planning to apply.

Back in 2019, Coinbase got licensed in Japan. Since then, it has not made any developments. But the crypto exchange has found other ways to expand its influence in the Japanese market. For instance, it plans to partner with Bank of Tokyo-Mitsubishi UFJ for Coinbase’s international expansion efforts.

Moreover, other famous Japanese firms have applied to acquire a crypto exchange operating license with the FSA, including the messaging giant LINE.

Though unsuccessful in Japan as of yet, Coinbase did not get an e-money license from the Central Bank of Ireland in October. Furthermore, the exchange also navigated the bureaucracy in the United States to register as a broker-dealer with the Securities and Exchanges Commission back in June 2018.