For the last three days, Bitcoin has been trading close to the $60,000 psychologist level. Despite that, the digital asset has been unable to breach the level which serves as its resistance level in the last three days. With the digital asset moving close level in the last few days, the coin could not muster the bulls enough to breach the price level.
With the bulls unsuccessful in their move above, the price crashed down to sell at $55,000. With the repeated rejection at $60,000, the level has been established as its core resistance level. If this pattern continues, Bitcoin might risk going through another breakdown which might push the price of the digital asset down further.
Bitcoin hoping to clear the $58,000 resistance level
If the bulls re-enter the market early, we could see Bitcoin touching$58,000 in the coming weeks. However, if this correction continues, the bears can take advantage of that and push the market in a declining fashion. According to an analyst, if the asset experiences a break down around the $54,000 price mark, the digital asset would see its price decline to sell at $46,000.
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Surpass the competition with this cutting-edge AI system! Utilize the prowess of innovative algorithms and amplify your crypto trading strategies with CypherMindHQ. Learn more today!
With the asset trading in this manner, to make an upward move would be very hard on the part of the asset. If the bulls enter the market close to $58,000, the market might witness another breakdown close to the second resistance level at $60,000. The coin above the resistance might go way above to touch a new all-time high price at $72,000.
With this rate of volatility, German regulator, Bafin has told leaders to be careful with how they carry out their trades. The regulator warned that the market is presently tricky, and traders could lose slots while gunning for gains in the Bitcoin market.
German regulator warns traders against volatility
Bafin is not the only regulator across the globe that has sounded such a warning as the European regulators have also warned traders to be extremely careful at this point. They mentioned that even though traders are aware of the risks associated with digital trading assets, this period possesses more than the risks they are familiar with. Even the European Union knows this and is trying to release rules and regulations that would guard crypto trading and their traders. On its part, Germany has rolled out regulations through the Bafin that guards crypto holders and traders across the country.
The regulator mentioned that the real reason they sound this note of warning is that most retail investors are not insured in the crypto market. Bitcoin is also seeing a move upward for now, with the digital asset hoping that the bulls would take over when it eventually crosses the $58,000 mark. The digital asset now has $72 000 in its sights and would need the bulls to reach that price mark.