Bitcoin has once again retested the important resistance level at $8,000, pumping 5 percent in less than an hour today. The move came shortly after the meeting of Finance Ministers and Central Bank Governors from G20 countries held in Fukuoka, Japan on June 8th and 9th.
Bitcoin Retests $8,000 Resistance Level
Bitcoin has once again experienced a notable leg up today, spiking from around $7,660 to slightly above $8,000 in less than an hour. The surge marked an increase of about 5 percent.
More importantly, however, it brought the price to the important resistance level of $8,000 after trading in a slightly lower range for the past couple of days.
Just today, Cryptopotato reported that BTC has touched the 92-95 RSI, which is an important indicator as, historically, once this happens, the price tends to drop down by another 30 percent or more.
Cryptopotato also outlined, however, that if Bitcoin manages to hold strong at the support level above $7,500 and doesn’t decrease with the said 30 percent despite touching the 92-95 RSI as it has done historically so far, this could be considered as a strong bullish signal. So far, the first step in this direction has been made. That’s why the next few trading days will definitely be important and interesting to monitor.
What Caused The Sudden Spike?
Determining the exact cause of Bitcoin’s latest positive spike is challenging, if at all possible. However, it took place not long after the Finance Ministers and Central Bank Governors from G20 countries met in Fukuoka, Japan.
The participants issued a joint communique which outlined their stance on cryptocurrencies and the regulatory path they’d want to undertake.
Notably, the high-ranked officials said that cryptocurrencies don’t pose a threat to global financial stability.
At the same time, they also reaffirmed their previous position regarding the overall regulation of cryptocurrencies:
…we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT). We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for AML and CFT. – Reads the document.
This falls in line with a position that G20 has previously expressed. Last summer during the meeting in Buenos Aires, the officials brought forward some of the benefits of cryptocurrencies.
Technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly. – Said the report.