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Deeper Pull Back on Bitcoin?

Deeper Pull Back on Bitcoin?

It is now quite obvious that price action is in a local downtrend, weakness still prevails with lower price looking more attractive as time progresses.

Bitcoin Insider
October 01, 2024 • Estimated Reading Time: 5 minutes

Observing price action on the larger timeframe, the structure resembles that of a clear range. Bitcoin simply failed to continue higher after breaking resistance - this places a larger emphases on a Failed Auction and/or Deviation of the Range High .

In recent news events, Variant Fund chief legal officer Jake Chervinsky says geofencing is an extreme measure to ensure compliance with US law.

Today’s report will also include:

Updated Technical Analysis
Other key market developments
Wisdom Drops

Bitcoin Price Analysis

Bitcoin’s recent correction comes after a local bullish trend into clear resistance that being the range high. Price action managed to break the range high resistance and trade multiple candle closes above - however failed to sustain the region.

This has now confirmed a Failed Auction of the high, it can also be classed as a Deviation of the range. Either way, price action is now trading back within the range where the overall range low becoming the next logical target.

It is important to note that the market structure remains bullish, this will only remain intact as long as the current lows hold. If the market structure shifts within the range, it will increase the probability of a bearish expansion into $52,000.

Bitcoin Insider will continue to monitor these time sensitive price development for the next update

Geofencing to navigate the murky waters of U.S. regulations ?

Crypto entrepreneurs are increasingly turning to geofencing to navigate the murky waters of U.S. regulations, which involve restricting access for users based on their location. Jake Chervinsky from Variant Fund highlighted this trend in a recent post, explaining that geofencing serves as a drastic measure in compliance due to ongoing regulatory crackdowns on cryptocurrency.

Geofencing essentially creates a virtual boundary that prevents access to digital services from specific geographic areas, effectively blocking U.S. users if compliance with local laws becomes unfeasible. This approach can include blocking entire countries where regulations are stringent, such as the United States, due to complexities in meeting disclosure and KYC requirements. Chervinsky labeled this as an "extreme solution," indicating that it involves completely withdrawing from the U.S. market when no other compliance strategy suffices.

This year, a significant number of regions have intensified their crypto regulatory frameworks, covering 70% of the global crypto market, according to TRM Labs. An example of this is Sky, formerly Maker, which faced backlash for restricting access through VPNs to its Spark Protocol, aiming to exclude U.S. users but affecting all VPN users globally. Similarly, Binance, the largest crypto exchange, restricts access for U.S.-based IP addresses.