June 10, 2022
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After Bitcoin broke out of its descending triangle on May 30 following a 20-day consolidation in the triangle, the price got rejected at $32,500. The top of the triangle worked as support on the way down at $29,300, which was followed by a 5% bounce on June 6. Bitcoin needs to break above the $32,000 resistance to advance to its next resistance at $38,000.
On the other hand, Bitcoin’s monthly stochastic relative strength index (RSI) has bottomed at zero as of June 1. Although this is a good sign for the long term (as the indicator is oversold now), it may also mean weakness in the shorter term which puts suspicion on Bitcoin’s recent uptrend.
Pundits believe that the legal action taken by the world’s third-largest economy can likely become a benchmark to adopt by other governments around the world.
This means that only licensed banks, registered money transfer agents, and trust companies will be allowed to issue stablecoins in Japan. On the other hand, the bill does not mention anything about the use of existing stablecoins like Tether and USD Coin.
