Yesterday, Bitcoin fell by more than 10% after SEC announced that all cryptocurrencies exchanges need to be registered. As of this writing, Bitcoin is trading below the crucial $10,000.
In a statement, the Securities and Exchange Commission said that bitcoin and other cryptocurrencies should be considered as financial assets which lie under its mandate.
The announcement came a few weeks after the SEC and CFTC met with law makers to discuss the cryptocurrencies industry and how to regulate it. In the meeting, the two agencies promised to come up with regulations to make the industry more vibrant and to protect the end users.
However, traders should take the move by the SEC positively. This is because, the industry could be more vibrant when more people have faith in it. Recently, the SEC has issued several subpoenas to exchanges in its attempt to establish better controls.
Bitcoin is currently trading at $9,575. As shown below, in recent weeks, the BTCUSD pair has created a near-perfect support and resistance trend. This means, that the pair could drop to the $9,270 level before starting an upward trend.
