Bitcoin hovered nervously above $30,000 on Jan. 5 as a volatile start to the week gave way to a fresh period of ranging.
Moving in a range bordered by $30,120 and $32,800 overnight, BTC/USD created a wide trading corridor which was nonetheless devoid of clear direction. Previously, a sudden dip caused $5,000 to be wiped off spot prices in hours, with the bottom appearing at $27,700.
Bitcoin buzzword “ranging” once more
While such action was yet to be repeated on Tuesday, traders were cautious—institutional praise continued to underscore overall belief in Bitcoin long term, but price action was no longer as bullish as in recent weeks.
“Let the range begin,” popular social media trader Cantering Clark summarized to Twitter followers.
Clark uploaded a chart of resistance levels which he argued dedicated a trading zone for Bitcoin between Monday’s lows and $35,000 “for the next month” or longer.
Such a result would not be uncommon, as others noted that no asset could continue rising unchecked forever. For fellow analyst Michaël van de Poppe, that old adage was ringing true as Bitcoin and Ether tested support with a series of lower highs and lower lows on the daily chart.
“The market is doing well; however, it is a bit overextended on the majority of lower timeframes. We are in a range,” he summarized in his latest YouTube update on Tuesday.
For BTC, the zones to watch involved $30,000, $28,000 and even $24,000, with $20,000—the site of 2017’s previous all-time highs—in place as the final frontier for buyer support.
At press time, BTC/USD focused on $31,800, a price point roughly in the middle of the past 24 hours’ activity.
Big business tackles “burdensome” US regulatory plans
Concerns meanwhile were being directed at a different threat to Bitcoin coming in the form of U.S. regulatory attention.
Late last year, lawmakers launched a concerted effort to increase oversight of the cryptocurrency trading sphere, proposing regulations which would require businesses to collect data on investors sending transactions even if the companies themselves were not directly involved.
For payment giant Square, well known for its Bitcoin support, this was the last straw from the outgoing Trump administration, and a dedicated response made it clear that the proposals did not have industry support.
“The impact of the Proposal would not only hamstring law enforcement capabilities, but also limit American innovation by hindering our ability to create a competitive service that allows customers to seamlessly transfer and transact in cryptocurrency the way the technology was designed,” part of the document reads.
“The burdensome information collection and reporting requirements deprive U.S. companies like Square of the chance to compete on a level playing field to enable cryptocurrency as a tool of economic empowerment.”
The proposals, together with impending decisions on legal action against both Ripple and Tether, nonetheless continued to create an air of uncertainty among commentators. Others, however, were convinced that the threat would ultimately blow over.
“Bitcoin solved the Byzantine generals problem. This solution can not be undone it is here to stay,” said PlanB, creator of the stock-to-flow Bitcoin price models, said over the weekend. He was referring to the way Bitcoin allows the authenticity of transactions to be verified without the parties involved having to trust each other.
“Some ignorati still spread tulip bubble FUD [fear, uncertainty, and doubt], tether FUD, it-has-no-value FUD. But more and more people understand the magnitude of bitcoin’s invention, and the impact on humanity.”