Bitcoin Price Fell Under $9,000 Following A Strong Rejection
Bitcoin (BTC) price dropped below $8,900 on May 21. This happened following the encounter of the digital currency with strong resistance at the $10,000 level. According to Coindesk data, the cryptocurrency fell to as little as $8,888.84.
In addition to that, the digital asset ended up declining as much as 10% from the recent high of $9,933.98 it achieved last May 17.
Analyst Marouane Garçon, also the managing director of crypto-to-crypto derivatives platform Amulet, explained this recent price crash. He mentioned the last push of Bitcoin towards $10,000, followed by the strong rejection the crypto experienced at that level.
Garçon stated, “The market just doesn’t believe it’s worth that much.”
Also, he noted that Bitcoin has been fighting with the $10,000 for quite some time now.
CEO of cryptocurrency hedge fund manager BitBull Capital, Joe DiPasquale, offered a somehow similar perspective. He explained that Bitcoin is struggling to cross $10,000 within this month.
With that, the situation added downward pressure exacerbated by news of Satoshi-era Bitcoins moving from a wallet last Wednesday. And that heightened worries of a possible sell-off.
Furthermore, analysts weighed in on the key areas of resistance and support that Bitcoin might face in the future.
DiPasquale added, “The next support levels can be expected around $,700, followed by $8,200.”
Aside from that, CEO of Invest Diva, Kiana Danial, shared thoughts, “If Bitcoin breaks below $8,800, we could expect more pullbacks towards the 23% and 38% Fibonacci retracement levels of $7,746 and $7,074, respectively.”
But looking at the bright side, Danial believes that once the pullback is over, Bitcoin bulls might recover energy to possibly breakthrough the $10,000 resistance. After that, it could bring the price back towards $14,000. And they identified this as one of the key resistance levels after $10,000.
Myanmar Central Bank
Meanwhile, the Central Bank of Myanmar (CBM) revealed that it does not recognize cryptocurrencies as an official currency. Also, they would impose or fine anyone caught trading digital assets. However, local crypto enthusiasts argued whether the pronouncements have any force in law.
Based on the Myanmar Times report, the country’s central bank released an announcement on May 15, containing that it is not letting financial institutions accept or facilitate transactions using digital currencies.
Moreover, the bank referenced cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Perfect Money, being traded from Facebook profiles as subject to regulations imposed by the CBM. While the announcement did not provide specific consequences, the bank stated that trading in such assets might end up in years of imprisonment of hefty fines.
Still, those involved in crypto trading locally seem far from deterred by the news. CEO of the platform Get Myanmar, U Nyein Chan Soe Win, highlighted, “the CBM has not prohibited the use of cryptocurrencies under the law. It has just issued an announcement. As there is no official law, it can’t be said that trading in digital currencies is illegal.”
Above all, the bank is trying to deliver a message that cryptocurrencies are unauthorized in Myanmar. But it does not look like it has mechanisms or a legal framework in place to regulate or block their use.
