BTC – Despite news that mining pool GHash.io are trying to hold the monopoly of computing power used in currency production once again, after an attempt to reach the 51% mark in January, the New York State is proposing to regulate Bitcoin. A giant step in order to gain trust from ordinary people.
Benjamin M. Lawsky, the superintendent of financial services, announced the “BitLicense” plan to create guidelines for virtual currency, which include rules on consumer protection to prevent money laundering and cybersecurity.
“We’ve tried to build some flexibility into these rules so, as these technologies change, we can bend to allow those innovations to continue”, said Lawsky, expecting these rules to encourage more companies to move to New York and more “digital” consumers.
The BTC weekly chart (in USD) shows price rebounded strongly from the March-to-April plunge from $698.00 high to $343.00. Resistance around the wick of the first week of March was to be expected, hence the failure of the upside at $668.00 in early June. The following corrective moves have always found support at $447/551 area, but a Doji Candle in the first week of July may compromise an attempt to breakout above $668.00 in the next days.
On the downside, first support could be found at $600.00 area, followed by the $547/551 zone. In case of an unlikely weekly close below that area, BTC would be in danger of a drop to $411.39/$435.39 (May lows) and even $342.97 (April low).
The upside is favored after June correction and the recent Weekly Doji is giving the market an opportunity to buy cheaper Bitcoin while the price stands above $547/551. The narrow range in price action lately suggests a wider move soon, back to recent support or for a breakout above the downtrend shown in the chart. After such move, BTC would retest the $698 all-time high reached in April before extending gains higher as more governments open doors to the digital world.
LTC – Litecoin has found quite high volatility in June, and after going as high as $14.25 in April, discount prices found a low at $4.97. Despite the rebound in early July, the market is facing a Weekly Doji Candle which could allow bulls to find cheaper prices, potentially back to $8.00. LTC has already closed a day above July-1 high, the most volatile day in recent weeks, but a breakout above $9.00 and a close above $9.30 (June-17 low) would confirm continuation of the upside.