- June 2, 2024
- Posted by: [email protected]
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Bitcoin (BTC) has recently struggled to maintain its bullish momentum, trading around $67,700. This decline is due to several factors, including a $300 million hack at a Japanese cryptocurrency exchange and President Biden’s veto of a bill that targeted SEC crypto regulations. Additionally, Vitalik Buterin’s insights on Bitcoin’s scaling disputes emphasize the need for new technologies like ZK-SNARKs, though these discussions are not expected to immediately impact BTC’s price.
Vitalik Buterin, the co-founder of Ethereum, recently weighed in on the ongoing Bitcoin block size debate. He acknowledged that proponents of smaller blocks had ultimately prevailed, noting that advocates for larger blocks lacked the technical prowess to successfully implement their ideas. Efforts by the “big blockers” to increase Bitcoin’s transaction capacity through hard forks, such as Bitcoin Classic and Bitcoin Unlimited, did not succeed.
Buterin suggested the adoption of new technologies like ZK-SNARKs to address Bitcoin’s scalability issues and prevent future disputes. He also highlighted advancements such as BitVM, which could enable decentralized Bitcoin rollups and enhance transaction processing without modifying Bitcoin Core. Although these discussions are pivotal for Bitcoin’s future, their immediate effect on BTC’s price is limited as they focus on historical and technical improvements rather than direct market factors.
In a separate incident, DMM Bitcoin, a Japanese cryptocurrency exchange, experienced a significant hack, losing 4,502.9 bitcoins valued at approximately $300 million. The breach was detected promptly, leading to swift preventive measures to prevent further losses. DMM Bitcoin, with support from affiliated companies, has pledged to replace the stolen bitcoins, ensuring users’ funds remain secure. The exchange has temporarily suspended spot purchases and warned users of possible delays in Japanese yen withdrawals. Chainalysis identified this hack as the largest since December 2022 and the seventh-largest in history. Despite the incident, DMM Bitcoin has promised full reimbursement to its customers and enhanced its security protocols.
Meanwhile, President Biden vetoed legislation intended to overturn SEC crypto guidelines. The proposed law sought to prevent corporations from classifying crypto assets as liabilities on their balance sheets, even if held for clients. Biden argued that this would weaken the SEC’s ability to protect investors and enforce regulations. This veto underscores the growing political focus on cryptocurrencies, especially with former President Trump recently advocating for crypto donations and investor rights.
Bitcoin (BTC/USD) is currently trading around $67,623, with the pivot point at $68,070 serving as a crucial indicator for market direction. Immediate resistance levels are positioned at $68,800, $69,800, and $70,600, while support levels are found at $67,500, $66,650, and $65,932. The Relative Strength Index (RSI) is at 47.53, suggesting a neutral to bearish sentiment. The 50-day Exponential Moving Average (EMA) aligns with the pivot point at $68,070, indicating significant dynamic resistance at this level.
A bullish breakout above $67,900 could propel BTC prices towards $69,000 or higher. Conversely, the 50 EMA and RSI suggest a selling bias, indicating a potential downward move. Therefore, selling below $67,900 is advisable, while a breakout above this level might warrant a buy position. A bullish breakout above $68,862 could lead to further gains towards $70,620, while a break below $67,885 might expose BTC to further downside risks, targeting $67,107 or even lower towards $66,380 and $65,428.
The outlook for Bitcoin remains cautiously optimistic above the pivot point of $68,232, with immediate resistance at $68,862 and support at $67,107. Traders should monitor these key levels for potential market movements.
