President Trump is not a big fan of cryptocurrencies. He has his reservations for the alternative, currency. And that is understood. He’s on a campaign of Making America Great Again, and that means promoting the USD.
The greenback, like Bitcoin, considering the recent political upheavals, has evolved to be a reliable store of value. Roaring as emerging currencies—and their economies, flash crash. For the emerging role Bitcoin plays, it must be uncomfortable for central banks and leading economies.
The US FinCEN Intervening?
And the US might be taking steps real soon. While they may not ban the trading of the currency like China, they may implement stringent rules in coming days.
This is if news is anything to go by. According to Steven Mnuchin, the Secretary of the United States Treasury, FinCEN, one of the country’s many regulators, would soon release new guidelines and requirement regarding Bitcoin and cryptocurrencies.
“We are about to roll out some significant new requirements at FinCEN. We want to make sure that technology moves forward, but on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.”
FAFT and LocalBitcoins
The announcement comes at a time when FAFT rule became active less than a month, grappling the operations of peer-to-peer cryptocurrency exchanges including LocalBitcoins.
The Helsinki-head quartered exchange, without divulging details, suspended trader accounts from several countries including Pakistan and Nigeria citing the need of “extra due diligence.”
BTC/USD Price Analysis
Week-to-date, Bitcoin price is up 4.5% as bulls slow down. Still, gains have been near perpendicular, and prices are clearly in an uptrend as BTC changes hand above $10,000.
From the chart, prices are cooling off and it may be an opportunity for savvy traders to exit their longs, in anticipation of a pullback towards the middle BB, or the 20-day moving average.
While it would be counterintuitive, and against the grain, even risky, it is practical because of the herding mentality.
A contrarian move, this would be invalidated if prices edge past $10,500 over the weekend.
Such a move would open doors for $14,000 or better less than three months before the decisive halving.
On the flip side, a correction would see BTC quickly crater back to the breakout level at $9,500.
Chart courtesy of Trading View-Coinbase
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.