Bitcoin just took a dive below the $27,000 levelcausing concerns among traders and investors. As market sentiment shifts, all eyes are now on a crucial support level at $26,600.
The ability of the cryptocurrency to sustain this support level will determine its future trends and could potentially set the tone for prices in the near term. In this Bitcoin price prediction, we look at factors influencing the market and we analyze the importance of the $26,600 support level and its implications.
EU Passes Mica Law to Regulate Crypto Market
I’European Union (EU) officially enacted a bill, known as framework law for crypto-asset markets (Mica). Introduced in 2020, the bill aims to establish a strong regulatory framework for crypto assets in the EU area.
After receiving the approval of the finance ministers of each member country, the bill was signed by Peter Kullgeren, Sweden’s Minister for Rural Affairs, and Roberta Metsola, President of the European Parliament, on 31 May.
For three years, the MiCA law had been the subject of in-depth discussions and deliberations among EU parliamentarians and the various members of the European Commission. The goal was to creating a unified regulatory environment for crypto assets in EU member states.
The law will come into effect in 2024., marking the start of regulation of crypto businesses operating in the EU zone. In particular, it will impose a obligation to register organizationsnew rules concerning traceability and transfers, the transparency of each transaction And the registration of the protagonists of each operation over 1,000 euros.
Anti-Money Laundering Guidelines For Cryptos To Come Into Effect In Emirates In June
On May 31, the Central Bank of the United Arab Emirates (UAE) announced the introduction of new guidelines on anti-money laundering measures for virtual assets, cryptocurrencies and NFTs. The objective of these guidelines is to ensure that financial institutions operating in the UAE adhere to AML measures and also those for the fight against the financing of terrorism.
The Central Bank of the United Arab Emirates recognizes the potential risks of virtual assets and underlines the importance of implementing due diligence procedures for regulated financial service providers when dealing with clients involved in cryptocurrencies and NFTs.
There new regulations will come into force in June. It will apply to various institutions, including banks, payment service providers, exchange offices, financial companies, insurance companies, brokers, etc. All of the new guidelines put in place is complies with standards set by the Financial Action Task Force (FATF) and henceforth incorporate them into the UAE’s regulatory framework.
Justin Sun’s Comments Help Bitcoin Stem Its Fall
Justin SunTHE tron founderrecently expressed his approval of the decision to allow retail investors in Hong Kong to engage in trading of virtual currencies starting today. He sees it as a milestone for Chinese cryptocurrency industryknown until now for its restrictive stance on digital assets.
Sun’s remarks related to the recent announcement of Hong Kong, which will allow retail traders to buy and sell cryptocurrencies as the country repositions itself as a digital asset hub. However, companies wishing to participate in this new initiative must obtain licenses under the new regulations.
According to Sun, a good thing about Hong Kong’s policy is that Chinese residents can also participate in crypto trading on Hong Kong exchanges, effectively expanding the cryptocurrency market to mainland China. These comments from Justin Sun provided some support for Bitcoin on Thursday morning and helped limit further declines in its price.
Bitcoin Price Prediction
Bitcoin is quoted at the price of $26,835 on this June 1stdisplaying a down nearly 1.2% in the past 24 hours. The main cryptocurrency continued its movement of decline for the fourth consecutive session, reflecting a strong downtrend. But, this comes as the cryptocurrency market is experiencing mixed feelings with a very moderate pullback across all cryptos.
THE bitcoin price is showing a slightly bearish trend and analysis of the four-hour chart reveals that it has already reached the 78.6% Fibonacci retracement level and then started a decline towards the next level of support at $26,600. The importance of this support level was discussed in our previous article, as its break could potentially trigger a bullish rebound in Bitcoin price.
In contrast, the presence of a bearish engulfing candlestick formation below the 50-day exponential moving average suggests that sellers currently dominate the market and that this rebound is still quite improbable and certainly of limited amplitude.
Nonetheless, as long as the price maintains its position above the $26,600 level, there is a possibility of trend reversal. This could lead to a potential upward move, targeting resistance levels at $27,300, $27,500 or even $28,000. On the opposite side, on the downside, if Bitcoin breaks below the $26,600 support level, the next target for sellers could be around $26,000.
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.