Bitcoin Soft after the 40,000 Rejection
BTC/USD Analysis
The cryptocurrency had a subdued start to the week, amidst prospects of tighter regulation in the United States. The US Securities and Exchange Commission (SEC) announced on Tuesday, 20 additional positions to the unit responsible for protecting investors in crypto markets and from cyber-related threats. This will nearly double the staff of the newly renamed Crypto Assets and Cyber Unit. [1]
SEC Chair Gary Gensler noted that the "increasing importance" of dedicating resources to protecting Crypto investors as more of them access the market. The director of the Unit, Gurbir S. Grewal, said that "Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space".
Despite the poor weekly start, BTC/USD took advantage of the US Dollar's negative reaction to the Fed's interest rate decision. The central bank did not surprise markets with its biggest rate hike in two decades, while Mr Powell appeared dovish around the prospect of more aggressive moves. [2]
The crypto is now running a positive week, after four straight losing ones, bringing the EMA200 (at around 40,800) in its crosshairs, but will need fresh impetus to tackle this level and pause the downward bias.
However, BTC/USD rejected the psychological level of 40,000 during Wednesday's advance and faces renewed pressure today, while recent recovery efforts have been short-lived. As such, it is still in a precarious position, in danger of fresh lows towards 37,147, but 34,307 seems a bit far for now.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 05 May 2022 https://www.sec.gov/news/press-release/2022-78 | |
| Retrieved 27 Apr 2024 https://www.federalreserve.gov/monetarypolicy/fomcpresconf20220504.htm |
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