Technically, the latest retreat looked rather appropriate on the back of profit taking after another rally to local highs above $11,500. The reason for the sell-off was another wave of fears about the regulatory crackdown around the globe. In an unstable regulatory environment, it’s quite logical to cut exposure in the volatile and still immature market. The cryptocurrency was hit particularly hard after the US Securities and Exchange Commission announced it will require digital asset exchanges to register with the federal agency.
Despite the continuing speculations about the vague future of the highly underegulated and inconsistent cryptocurrency market, bitcoin continues to show a more stable dynamics since the December rout and therefore attracts more traders. The fact that the price makes higher lows in the , favors fresh attempts in the short-term, with $11,500 area remains key for buyers. As long as the price is below this barrier, the upside risks are limited.