- Bitcoin prices in range mode
- Controversial AB 1489 bill introduces stringent rules for VCs
- Transactional volumes low but the trend has been positive
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 Analysis
Fundamentals
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.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
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.
