Following solid gains over the weekend, bitcoin has resumed its downward path as the price faced a strong local resistance around $8,600 once again. The coin still holds marginally above $8,300, down 0.90% on the day.
The bearish mood around the digital currency has intensified amid the reports that state and provincial regulators in the US and Canada are targeting ICOs. The crackdown operation called 'Operation Cryptosweep' will likely take place in the coming weeks. This month, there are 70 new investigation and 35 enforcement actions already, and this is just the beginning.
Meanwhile Japan, which is considered to be one of the most perceptive countries towards digital currencies, has criticised global central banks for being 'extremely cautious' on issuing digital currencies.
Bitcoin has lost its bullish momentum once again but the bears aren’t hurrying to push the price significantly lower, with the $8,000 mark remaining the key support. As long as BTCUSD is trading above this area, the downside risks are limited. The pair will likely continue its consolidation within the $8,600-$8,000 range for the time being.