Bitcoin price analysis – BTC/USD consolidates the weekend losses despite Citigroup plans to tap cryptocurrency trading
Bitcoin has gained 2% since his time yesterday, but the upside is limited.
Citigroup has reportedly invented legal way to trade cryptocurrencies.
BTC/USD is changing hands at $6,301 with 2% gains on a daily basis. The coin has partially recovered from the weekends' slump, however, the upside momentum is weak despite some positive news about Citigroup taking cryptos closer to institutional investors.
Citigroup solves the puzzle
Citigroup has developed a new way to get exposure to cryptocurrency market without actually owning the assets, according to Business Insider. The new structure is called Digital Asset Receipt or DAR and it would place digital assets within the regulatory framework, allowing institutions, hedge funds and other big investors to tap this profitable market in a less risky way.
The instrument will work like an American Depository Receipt or ADR, which allows US investors owning foreign stocks that are not traded on US exchanges.
"In this case, the cryptocurrency is held by a custodian and the DAR is issued by Citigroup, the people said. The bank will alert the Depository Trust & Clearing Corp, a Wall Street middleman that provides clearing and settlement services, once it's issued the receipt," a person with knowledge of the plans explained to Business Insider.
Bitcoin's technical picture
On the intra-day basis, BTC/USD is capped by SMA50 (1-hour) at $6,316, followed by SMA100 (1-hour) at $6,373. Once these areas are cleared, the recovery may be extended towards $6,400, though the ultimate bulls' goal is created by 23.6% Fibo retracement at $6,800, strengthened by SMA200 (1-hour).
On the downside, the nearest support comes at $6,116 (September 8 low), followed by critical $6,000.
BTC/USD, 1-hour chart
Alan Zibluk Markethive Founding Member