The question is whether AB 1489, a new Californian bill, will pass as the state follows the New York route. If so, it is likely that prices will dump in response. However, in the meantime, Bitcoin (BTC) could expand above $4,500 as bulls aim for $6,000.
Bitcoin Price AnalysisFundamentals
Talk is about the fruitful relationship between favorable and supportive legislation and the entry of high net-worth, institutional grade investors. With their deep pockets, their loosening of purse strings will oil the system tagging with its stability which in turn reduce or even eliminate volatility.
For so long, the abnormal price fluctuations of Bitcoin prices described the most valuable coin. Governments across the world issued disclaimers, stating that citizens are free to invest in digital assets but should know that they are volatile and therefore not recommended.
Nonetheless, there is a new tune. As the wind of change sweeps across the US, states are beginning to recognize Bitcoin as a form of money, digital properties whose ownership is protected by the government.
New York set the trend and through BitLicense, came up with rules and regulations governing the operation of crypto exchanges and similar payment processors. In a system that is designed to be free of third parties, but there is a compromise. In line with crypto laws, we must recognize that blockchain and crypto would not operate in isolation despite being an appealing proposition. Therefore, how the state of California will decide on the new controversial bill, AB 1489, will determine crypto adoption and even price in the medium to long-term.
Candlestick Arrangement
Down more than 75 percent from 2017 highs, the community is expecting the market to bottom-up and edge towards $6,000 by mid-Q2 2019. All the same, it all depends on how prices react at resistance and support levels in the short-to-medium term.
While we expect Bitcoin (BTC) bulls to have the upper hand, Feb 24 liquidation remains an obstacle, and for trend continuation, we must see a sharp reversal from current levels. The outcome largely depends on how strong the breakout will be now that prices are accumulating above $3,800 preventing the confirmation of Feb 24 declines while simultaneously asserting the presence of Feb 18 bulls.
Like we mentioned, risk-off, aggressive type of traders can buy on dips in lower time frames with first targets at $4,500. Any break below Feb 18 lows of $3,500-600 zone cancels this bullish outlook.
Technical Indicators
Unexpectedly, the short-term trend of Bitcoin depends on how fast bulls reverse Feb 24 losses. Complete with above average volumes—36k, bullish confirming bars need to print high volumes above 40k as prices spring off from consolidation.
