Bitcoin Price bBounces Back From Dip; Intraday Cap Below $8,200: IMF Chief, Christine Lagarde Says Cryptocurrencies Can Transform Financial Activity

“Before crypto-assets can transform financial activity in a meaningful and lasting way, they must earn the confidence and support of consumers and authorities,” Christine Lagarde.

• BTC/USD is testing the short-term resistance level at $8,100, but short-term support is at $8,000.

Bitcoin price dipped below yesterday’s highlighted support at $8,000 to trade below $7,800. The selloff has been linked to a couple of events that took place on Tuesday. A couple of individuals were reported to have sold cryptocurrencies worth millions of dollars while the New York Attorney General office made an announcement that it will be looking into cryptocurrency exchanges. An unknown investor sold 6,500 Bitcoins yesterday while another liquidated $6,600 on Monday. It is, however, not clear which one of these events cause the $200 dip in Bitcoin price.

In other news, Christine Lagarde, the Chief of International Monetary Fund expressed her views about cryptocurrencies in an official blog post saying:

“Before crypto-assets can transform financial activity in a meaningful and lasting way, they must earn the confidence and support of consumers and authorities…An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.”

These comments are working as a boost to Bitcoin as the sentiments change positively across the market. Bitcoin price is staging a recovery after an extended selling period this year and Christine Lagarde’s comments have come at the right time.

Technically, Bitcoin price is exchanging hands above $8,050, after staging a sharp rise from last night’s dip. BTC/USD is testing the short-term resistance level at $8,100, although there is looming bear pressure that could force a lower correction. On the downside, the MACD is in the negative region to signal that the path of least resistance is to the downside. Significantly, the 23.6 percent Fib retracement level will provide short-term support at $8,000, but the major support zone lies at $7,870.

BTC/USD 240’ chart