Bitcoin (BTC) has retraced markedly today, just one day after gaining 8% in response to President Biden’s executive order. Bitcoin, like the rest of t
Bitcoin (BTC) has retraced markedly today, just one day after gaining 8% in response to President Biden’s executive order. Bitcoin, like the rest of the cryptocurrency market, is under pressure, having dropped more than 5% and falling below $40,000 levels. As of press time, BITCOIN was trading at $39,324 and had a market capitalization of $745 billion.
Bitcoin Drops After a Gain
Bitcoin reversed course, while the euro’s two-day rally came to a halt as investors awaited the European Central Bank’s (ECB) response to the looming storm of high inflation and weak growth. During Asia hours, the top fell to $39,000, nearly reversing Wednesday’s 8 percent rise caused by US President Joe Biden’s crypto executive order.
Despite the fact that the crypto executive order boosted the crypto market, there are still concerns about rising inflation. The entire focus will be on the approaching US inflation, which is expected to rise as a result of the current geopolitical situation.
BTC/USD
The Federal Reserve (Fed) has historically had the most impact on cryptocurrency markets, whereas ECB rate decisions have had almost no impact. Thursday’s announcement, according to one observer, is critical.
BTC/USD Technical Outlook
On Friday, Bitcoin failed to break through the $40,000 resistance level. Therefore, it may begin a new decline. On the downside, there is immediate support near $37,150.
The 100 hourly simple moving average and the double bottom pattern will be extending this support in the 4-hour timeframe. The break below the $37,000 level can extend the selling trend until $36,450 or $34,150. If the bearish sentiment prevails and the decline continues, there’s further support at $33,000 at $31,000, $30,000 and $28,000. But the decline might have stopped already, with BTC trying to consolidate today below $40,000. The crypto market has not been making any new lows since January, which suggests that traders and investors are waiting for the sentiment to improve in order to resume the uptrend.
Although for now, let’s keep an eye on $39,100 as selling bias may dominate below this level and vice versa. Good luck!
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