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Bitcoin tested the weekly lows in yesterday’s session, opening this morning with a drop below the important Moving Average indicator line, over a 200-day period (MA200). In December, it acted as a support level that stopped two waves of sell-offs.
Speculators have failed to turn these rebounds into a trend due to the general negativity in the financial markets and political decisions in the United States that directly affect the cryptocurrency market.
Now the next drop in BTC quotes with fixation below the MA200 line may lead to a sharp increase in bearish pressure to retest the $ 40,000 level. This is the only way speculators will be able to attract the attention of Buyers, whose volumes were not enough to create a trend when the bulls kept quotes above MA200 in the first half of December …
As you can see from the chart, the previous fall by $ 40,000 led to a 20% rebound and a breakdown of the $ 50,000 mark within two days.
Low investor interest in digital assets is due to the prevailing negative attitude towards investments in the IT sector. These assets were overbought due to increased demand for technology stocks during the coronavirus period. This can be seen in the picture of the combination of the two-year NASDAQ charts and the S & P500 broad stock index.
Now, when the US Federal Reserve and other central banks of developed countries are tightening monetary policy, investors are fixing profits in the “overbought” techno-sector. Bitcoin and altcoins are no exception, cryptocurrencies also showed a record increase in value in 2021.
In addition, at yesterday’s meeting, the US Financial Stability Oversight Board (FSOC) made an ultimatum decision. Treasury Secretary Janet Yellen has pledged to fast-track the regulation of stablecoins if Congress does not begin to consider such laws.
FSOC has this power since the 2008 crisis, thanks to the Dodd-Frank legislative amendment. Yellen plans to ban the issuance of dollar-pegged tokens to any companies that do not have a banking license and a special account with the US Treasury.
Treasury tries to recognize cryptocurrencies as a systemic threat to the economy
#NASDAQ #Politics #Lead #Update #Bitcoin #Weekly #Lows
