The Financial Conduct Authority (FCA) in the UK said yesterday that Binance, the biggest cryptocurrency exchange in the world, "is not permitted to undertake any regulated activity in the UK". Nevertheless, the price of Bitcoin continues to rise in the aftermath of the announcement.
This is the latest instance in which a financial regulator clamps down cryptocurrency trading as legitimacy concerns continue to plague the crypto industry. Even still, convertibility fears have only bolstered the demand for the most sought after cryptocurrencies in the short term.
As can be seen on the 30 Min price chart above, Bitcoin is still recuperating after having temporarily sunken below the psychologically significant 30000.00 threshold last week. The price of Bitcoin continues to rise in an effort to break out above the major Distribution range.
The current structure of the price action resembles a Wyckoff Cycle, given the recent consolidation within said Distribution. The latter spans between the minor resistance level at 35250.0 and the minor support at 34250.0.
If the current attempt at a breakout above the upper boundary of the Distribution range fails, the price is likely to continue consolidating within it before it resumes diving. That is so because Distribution ranges typically entail mounting selling pressure.
Even still, the price action remains concentrated above the 50-day MA (in green), which serves the role of a floating support. Meanwhile, the 100-day MA (in blue) is drawing nearer to the lower boundary of the Distribution. Both of these moving averages could resist the formation of a significant dropdown for the time being.
In a public statement that was released yesterday, the FCA said that no entity in the Binance Group "holds any form of UK authorisation" to provide financial services to British customers.
We have issued a consumer warning on Binance Markets Limited and the Binance Group https://t.co/noyoK1Bj1n— Financial Conduct Authority (@TheFCA) June 28, 2021
The FCA also went on to characterise cryptocurrency trading as a high-risk endeavour, which also contributed to the mounting volatility in the industry.