Bitcoin: Here’s What Might Catalyze More Downswings
After the $56,559 low and $60,945 high, BTC/USD closed near $57,014. The pair plunged for the 4th consecutive trading session yesterday, hitting its lowest price zone since 13 October. The plummets come as the overall crypto market suffered a sell-off over the past few days.
As the crypto industry witnessed deepening retracement, BTC declined under the psychological level at $60,000, exploring levels near $56,000. Market players trusted that BTC appeared weaker than last week’s sessions when it increased to touch an ATH of $69,000.
Meanwhile, Joe Biden stated that he would reveal a Fed Reserve chair nominee in the days to come. Two names remain in front – Jerome Powell reappointment or another chair, Lael Brainard, Fed Governor. Market players trust that the latter will be ideal for the cryptocurrency space. Meanwhile, Biden will consider various factors, like their move on fighting inflation and the US central bank stance to introduce a digital dollar, when selecting between them.
Narendra Modi, Indian Prime Minister, warned that BTC is a risk to the younger generation. However, he appears hawkish as the government prepares legislation to regulate digital coins. Modi urged democratic countries to work on the crypto space to prevent what might hurt youths in the future. The comments targeted the cryptocurrency’s anonymity nature as unregulated transfers can fuel money laundering, smugglers, and drug trafficking.
Moreover, US Congress members introduced the Innovation in America Act, a bipartisan bill aiming to fix crypto reporting needs in infrastructure bills legislated this week. September had a tax change, requiring individuals that received more than $10,000 in cryptos like BTC to report sender’s details to the IRS (Internal Revenue Service).
BTC/USD Technical View
Technicals show BTC/USD riding bearish waves. The pair violated the $57,850 support, extended by a 38.2% FIB retracement level. Without narrative shift, the leading crypto will hit the 50% FIB retracement support at $53,332. Extended bearishness can catalyze another selling towards 61.8% FIB of $50,965. Bitcoin requires a close above $57,850 to attract buyers.
BTC Daily Tech Levels
- Support levels – $55,400, $53,787, and $51,014
- Resistance levels – $59,786, $62,559, and $64,172
- Pivot Point – $58,173
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