Bitcoin prices experienced a modest decline of 0.50% on Wednesday, settling at $27,412. This slight dip is in stark contrast to its 4% surge over the past week, despite challenges faced by the digital currency sector. This includes the US Treasury’s ban on cryptocurrency wallets, driven by law enforcement’s pursuit of substances like fentanyl.
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on cryptocurrency wallets allegedly connected with individuals and entities engaged in producing fentanyl. This move is part of an attempt to control the use of cryptocurrencies in illicit activities. The US Justice Department also filed indictments against China-based chemical manufacturers and their employees, who are alleged to have used cryptocurrency transactions to facilitate an illegal fentanyl precursor distribution scheme.
In light of the sanctions, wallets for Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Tether (USDT), and Tron (TRX) have been added to OFAC’s list of Specially Designated Nationals. Deputy Treasury Secretary Wally Adeyemo highlighted the significance of this enforcement action in disrupting the illicit drug network.
Cryptocurrency investor Kevin O’Leary has voiced his concerns about the potential damage strict regulatory barriers in the US could have on crypto innovation. After a congressional hearing where SEC Chairman Gary Gensler was questioned about crypto regulations, O’Leary claimed lawmakers were displeased with Gensler for allowing innovation to slip away. He pointed to the SEC’s enforcement against major US-based crypto exchanges and the collapse of FTX as evidence. O’Leary then highlighted the emergence of a new exchange in Abu Dhabi called M2, which is set to replace FTX and Binance. He emphasized its compliance and significant financial backing, predicting that non-US exchanges might become the new industry standard.
For Bitcoin price prediction, the pivot point stands at $27,385, with resistances at $28,788 and $29,576, and support at $26,629 and $25,226. The Relative Strength Index (RSI) indicates a neutral stance at 50.29, while the 50-Day Exponential Moving Average (50 EMA), at $27,188, hints at a mild bullish trend. However, a drop below this could prompt selling.
In conclusion, Bitcoin appears bullish above $27,150, but dipping below might signal bearish tendencies. Market updates remain crucial for traders. To stay up-to-date with the world of digital assets, we recommend exploring a handpicked collection of the best 15 alternative cryptocurrencies and ICO projects to watch in 2023. This list has been curated by professionals from Industry Talk and Cryptonews, ensuring expert advice and critical insights for your cryptocurrency investments.