Bitcoin (BTC) prices were still trending downward over the past week. After the tightening by the Chinese government in mid-May as well as the tweets of Elon Musk, the owner of Tesla, there is no longer any sentiment that could drive the price of this digital asset up again.
Bitcoin prices still experienced a correction of around 8% over the last week, calculated from Monday (5/24) to Sunday (5/30). During this period, the BTC price ranged from IDR 482.03 million (the lowest price) to IDR 584.82 million.
According to Coinmarketcap data, the price of BTC was around 9.42 WIB at around 497.37 million IDR on Monday morning. The price of BTC reached its peak of IDR 948.59 million on April 14th.
Last April, negative sentiment towards the prices of cryptocurrencies, including Bitcoin, emerged when a scandal involving the misappropriation of assets from cryptocurrency clients broke out in Turkey. This crime was committed by Thodex CEO Faruk Fatih Ozer. Thodex is an exchange or crypto buying and selling platform in Turkey.
Then there was a series of negative sentiments in the crypto market. On May 13, Elon Musk, the owner of Tesla, announced via his Twitter account that Tesla would stop using Bitcoin for Tesla car purchase transactions. In fact, back in February, Tesla announced through an information disclosure with the Securities and Exchange Commission that it had purchased $1.5 billion worth of Bitcoin and allowed Tesla cars to be purchased with Bitcoin.
The Chinese government then released another directive in mid-May that suppressed crypto trading in the country. Beijing banned banks and payment companies from providing services related to cryptocurrency transactions. The Chinese government also warned investors about the risks of crypto trading. This new policy certainly makes it difficult for crypto investors in the country to add to or withdraw crypto assets.
This new Chinese policy complements its policies in 2017 and 2019. In September 2017, the People’s Bank of China or China’s central bank; The Central Cyber Office and seven other government departments have issued an “Announcement on Preventing the Risks of Token Issuance and Financing.” This is a ban on conducting Initial Coin Offerings (ICO) or cryptocurrency-based fundraising processes. In June 2019, the Central Bank of China (PBOC) issued a statement that it would block access to all domestic and foreign cryptocurrency exchanges and Initial Coin Offering (ICO) websites.
MA-9 and RSI indicators Bitcoin price/Rekeningku
After these negative sentiments, there has been no positive sentiment to move crypto prices, including Bitcoin, so far. Technically, Bitcoin prices have been in a downtrend since May 10th. The MA-9 indicator shows that Bitcoin price is currently still in a downtrend. However, it should be noted that the Relative Strength Index (RSI) indicates that prices are currently in oversold territory.
Based on Sunday (30/05) prices, Bitcoin prices are estimated to move in the support range of IDR 486 million to IDR 445 million and the resistance range of IDR 544 million to IDR 568 million in the future.
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