Bitcoin Forum

During a bear market, fear seizes investors, resulting in a long liquidation. While some believes that the Bitcoin bubble has burst, others that the decline in the current value is only a correction, which will lead to higher prices later in the year.

Currently, the price of Bitcoin has fallen back below the crucial level of $ 7,000 amid rising selling pressure. Crypto seemed likely to retest the resistance zone at around $ 7,200, but buyers did not have enough momentum to protect the price gains above $ 7,000.
On the other hand, as from April 3, the cryptocurrency exchanges will have to conform to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) in Australia.

Read More: https://bitzamp.com/bitcoin-price-face-crucial-resistance-all-crypto-exchange-are-required-to-register-with-austrac/ (https://bitzamp.com/bitcoin-price-face-crucial-resistance-all-crypto-exchange-are-required-to-register-with-austrac/)

Below $7000, $6100 is the major support level which if broken can create a panic in the market and can take the price to $4000 levels. But $6100 is unlikely to be broken as it is the major and the toughest support level to break.

Regarding the bubble getting burst, if we look at the longer term bitcoin price chart, price is still parabolic. The December hike was unnatural and a dip was expected. Where all the financial markets like stocks, forex, shares are suffering, crypto market is still in a good shape. The long term chart is still parabolic and looks bullish. Thus, calling it a bubble burst would be totally wrong.

The main problem we have is that many holders are not as sane as we are since the recent dips created that negative feeling that can ruin good judgement and can crush that necessary trust and confidence for the future. Though personally speaking I fully believe in Bitcoin and that all of these developments are just temporary based on historic precedents. We should be hoping that the market will resist negative news and would focus on the possible gains that can happen soon.

The traditional resistance and support barriers really don’t seem to apply to cryptocurrencies. The much vaunted resistance level of $7200 was broken a few hours after this was published. It might be possible to make money from short term volatility, but it is far safer to take a long term view on the subject.