Crypto Industry News:
The cryptocurrency exchange BitMEX has agreed to pay up to $ 100 million to resolve the case with the United States Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN).
As part of the settlement, BitMEX will pay a civil penalty of $ 100 million "for illegal operation of the cryptocurrency trading platform and anti-money laundering violations." In addition, the company will need to hire an independent consultant to perform a backlog of its transactions to determine if it has failed to properly report suspicious activity.
"This case reinforces the expectation that the digital asset industry, as it continues to affect a wider pool of market participants, is taking its responsibilities in the regulated financial industry seriously and its responsibilities to develop and adhere to a culture of compliance," said CFTC CEO Rostin Behnam. "The CFTC will take immediate action when events in its jurisdiction raise concerns related to the protection of customers and consumers."
While the CFTC communique mentioned that the settlement resulted from a case against former CEO Arthur Hayes and other company executives, they are likely to face allegations of a breach of banking secrecy law. According to a spokesman for BitMEX co-founders, Hayes, Ben Delo and Sam Reed were not parties to the CFTC and FinCEN settlement.
Technical Market Outlook:
The BTC/USD pair has hit the 50% Fibonacci retracement located at $46,994 and is having trouble to continue the rally even higher. In a case of a breakout, the next target is seen at the level of $51,189, which is the 61% Fibonacci retracement level. The nearest technical support is located at $43,159 level, but the intraday technical support is seen at $44,555. Please notice the declining momentum and negative divergence at the H4 time frame chart support the short-term bearish outlook.
Weekly Pivot Points:
WR3 - $55,418
WR2 - $50,074
WR1 - $47,529
Weekly Pivot - $42,313
WS1 - $39,834
WS2 - $34,360
WS3 - $31,560
Trading Outlook:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $47,000. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
