- The cryptocurrency market is still finding a way around regulations. More so, the activities of the market are still heavily unregulated.
- There is a short-term support at $6,700, but the major support level lies at $6,450.
The Commodity Futures Trading Commission (CFTC) has launched an investigation into Coinbase, Bitstamp, Kraken as well as ItBit exchanges. This investigation could have been the possible cause for Bitcoin price tanking 10% in a day cutting short a rebound that traders were eagerly waiting for.
“Perhaps more impactful is the news that US government investigators have ordered four major cryptocurrency exchanges — including Coinbase and Kraken — to hand over comprehensive information regarding trading in order to aid in its investigation over potential price manipulation,” Crypto Experts wrote on Twitter.
The cryptocurrency market is still finding a way around regulations. More so, the activities of the market are heavily unregulated. Price fluctuation is high in this space while illegal trading is not a simple matter that can be pushed aside. Activities such as spoofing, dumping, whale influence as well as wash trading are things that traders have to deal with often. CFTC has requested trading data from the exchanges above to scrutinize instances of illegal activity. It should be noted that all these exchanges follow a strict KYC, however, trading could still have some laxities.
Bitcoin price analysis
Bitcoin price overreacted to the above investigation tumbling below $7,500, $7,250 and $7,000 support zones. BTC/USD has traded lows of $6,630, marginally above the lows of $6,450 traded in April this year. Bitcoin price is currently exchanging slightly above $6,800 while a bullish momentum is growing to reclaim the losses that happen during the weekend trading sessions. There is a short-term support at $6,700, but the major support level lies at $6,450.
BTC/USD 4-hour chart