On April 11, the Bitcoin price slid to below $40,000 for the first time since March 16. This was after the cryptocurrency dropped by more than 6 per cent during the trading session. However, today and yesterday’s trading sessions have resulted in a net gain in the markets, which has seen the prices of Bitcoin start to trade above the $40,000.
The current slump in price that has lasted for weeks comes amidst new increased efforts from the Federal reserves to regulate the cryptocurrency industry. Recently, Janet Yellen, the United States Secretary of Treasury, called for new cryptocurrency regulations. The call indicated that Yellen was calling for the cryptocurrencies to be classified the same way other financial instruments. Bitcoin falls under the same rules and federal regulatory oversight as traditional financial systems.
The call also came a few weeks after an executive order signed by Joe Biden in March directing federal agencies to implement a strategy for policies and regulations on digital assets like cryptocurrencies. The Securities and Exchange Commission (SEC) Chairman Gary Gensler had also announced new initiatives meant to protect cryptocurrency investors earlier this week. Unfortunately, the new initiative would also see Bitcoin regulated, likely driving the crypto prices down.
Looking at the daily chart below, we can see the prices of Bitcoin have recently touched the lower trendline of an ascending channel. Today’s trading session has also lost in the markets. However, the prices have remained a net gain in the market since yesterday. The chart also shows that the prices have been trading at around $40,000 for the past few days. The chart also shows that, within the session, the Bitcoin prices have slid below the $40,000 psychological level many times, reaching lows of $39584.
Using the chart, it is clear that although today’s trading session has lost in the market, there is a high likelihood of the prices continuing with the upward move that started yesterday. This will be a bounce from the ascending trendline of the channel. Therefore, I expect the prices to continue with the bullish trend. Prices are also likely to hit $42,000 in the next few days.
This post was last modified on Apr 13, 2022, 13:50 BST 13:50