Daily Market Recap – BTCUSD Bitcoin rebounds despite Binance ban

Bitcoin rose over the weekend by as much as 8 percent to USD 35,280 before stabilizing today.

The cryptocurrency digested one of the biggest moves yet by a regulator in a global crackdown, Binance Markets Ltd, a subsidiary of leading global crypto-currency exchange Binance, was banned on Sunday by the U.K.'s financial watchdog from conducting any regulated activity in the country. Meanwhile, Huobi, one of the most popular crypto-currency platforms in China, said Monday that users in the country are banned from trading derivatives.

Crypto-currency advocates often interpret strict regulatory measures as a sign that the market is maturing. They also seem to be encouraged by the fact that bitcoin failed to break the closely watched support level over $30,000 over the weekend. This level has been tested several times but has never given way, which can be seen as a positive.

Bitcoin has lost about half its value in recent weeks due to concerns about its environmental impact and a crackdown by regulators around the world -- particularly in China -- against the sector. The digital currency hit a record near $65,000 in mid-April.

Today, a Mexican billionaire came out in support of the crypto currency, saying his bank is “working” to accept bitcoin. Finally, according to CNBC, Tesla CEO Elon Musk and Twitter CEO Jack Dorsey will debate Bitcoin on July 21 at a public event called “The B World.” The volatility should be on the agenda of this exchange as Musk's releases lately have seemed contradictory.

Bitcoin has once again bounced off the very strong support area between USD 28,800 and USD 30,000 but remains below the 200-period moving average that defines the border between a bear and bull market. The cryptocurrency is limited to the upside by a 20-period bearish moving average. A breach of the latter would bring it back to the resistance at USD 42,000, which it will need to break through to end this corrective period.

(Chart Source: Tradingview 28.06.2021)

Should Bitcoin fail to confirm its rebound, a retest of the support area carries the risk of a bearish wave towards USD 16,000.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.