The recent price trend of Bitcoin has dropped to the level of $27000, causing concerns among traders and investors.With the change of market sentiment, everyone's attention is now focused on the key support position of $26600
The recent price trend of Bitcoin has dropped to the level of $27000, causing concerns among traders and investors.
With the change of market sentiment, everyone's attention is now focused on the key support position of $26600.
The ability of cryptocurrencies to maintain this level of support will determine their next actions and may set the tone for recent price trends.
In this Bitcoin price forecast, we delved into the factors that affect the market and analyzed the importance of the $26600 support level.
EU officials incorporate the MiCA framework into law
The European Union (EU) has officially signed a bill called the Crypto Asset Market (MiCA) framework. This bill was introduced in 2020 and aims to establish a sound regulatory framework for encrypted assets in the EU region.
After obtaining approval from the Minister of Finance, the bill was signed on May 31st by the Swedish Minister of Rural Affairs, Peter Kulgren, and the Speaker of the European Parliament, Roberta Mesola.
Over a period of three years, the MiCA framework underwent thorough discussion and review among EU legislators before obtaining final approval.
The framework aims to create a unified regulatory environment for encrypted assets in EU member states.
This law will come into effect in 2024, marking the beginning of regulation of encryption companies operating in the EU region.
The cryptocurrency anti money laundering guidelines will take effect in the United Arab Emirates in June
On May 31st, the Central Bank of the United Arab Emirates announced the introduction of new guidelines on anti money laundering (AML) measures related to virtual assets, cryptocurrencies, and NFTs.
The focus of this guide is to ensure that financial institutions operating in the United Arab Emirates comply with AML and CTF (Counter Terrorism Financing) measures.
The Central Bank of the United Arab Emirates acknowledges the potential risks associated with virtual assets and their service providers.
The bank emphasizes the importance of implementing due diligence procedures for regulated financial service providers when dealing with customers involved in cryptocurrencies and NFTs.
The new regulations will come into effect in June. They will be applicable to various institutions, including banks, payment service providers, exchanges, financial companies, insurance companies, brokers, hawala suppliers, and agents.
The main objective is to take measures to prevent illegal activities, such as the financing of terrorism and money laundering.
The new guidelines comply with the standards developed by the Financial Action Task Force (FATF) and are incorporated into the regulatory framework of the United Arab Emirates.
Sun Yuchen's comments helped Bitcoin stabilize in the decline
Sun Yuchen, founder of Bochang, recently stated that he agrees with Hong Kong's decision to allow retail investors to engage in virtual currency trading starting today.
He believes that this is an important milestone in China's encryption industry, known for its restrictive stance on digital assets.
Sun's comment is about Hong Kong's recent announcement, which will allow retail traders to buy and sell cryptocurrencies as the country repositions itself as a digital asset center.
However, companies seeking to participate in this new initiative must obtain permits in accordance with the new regulations.
Sun said that a significant aspect of Hong Kong's policy is that Chinese residents can also participate in retail cryptocurrency transactions on the Hong Kong Stock Exchange, thus expanding the exposure of the cryptocurrency market to Chinese Mainland.
Sun Yuchen's comments provided some support for Bitcoin on Thursday and helped limit its further price decline.
Bitcoin Price Forecast
As of June 1st, the current price of Bitcoin is $26858, which has dropped by nearly 1% in the past 24 hours.
The leading cryptocurrency continued to decline for the fourth consecutive trading day, reflecting a bearish trend.
This is because the broader cryptocurrency market has experienced complex emotions.
Bitcoin prices have shown a slight bearish trend, hovering around the 26850 level.
An analysis of the four hour time frame shows that Bitcoin has reached 78.6% of Fibonacci's pullback level, followed by a drop to the next support level of 26650.
We discussed the importance of this support level in previous updates, as its breakthrough may trigger a bullish reversal of Bitcoin prices.
The existence of the bearish swallow candlestick pattern below the 50 day moving average of the index indicates that short positions currently dominate market sentiment.
Nevertheless, as long as the price remains above the 26600 level, the trend is likely to reverse.
This may lead to a potential upward trend, with target resistance levels at 27300, 27500, or even 28000 points.
The downside is that if Bitcoin falls below the 26600 support level, the seller's next target may be around 26000.
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