BTC and crypto Market

Author: Trade Pro Skills

Friday, 21 May 2021 Number of words: 462 Study time: 3 Minutes Views: 73


The thrilling market gets more attention!

By: Ahura Chalki

Market analyst – IFC Markets

The recent cryptocurrency trend is thrilling. As BTC (Bitcoin) fell below the $30,000 level on Wednesday, many celebrities once again used their verbal influence to save the decline.

Bitcoin has followed many celebrities (Tesla founder Musk [claims that renewable energy can help solve the problem of excessive energy consumption], ", TRON founder Justin Sun, and famous value investors After Bill Miller and others publicly expressed support for Bitcoin, the asset bottomed out overnight and recorded a rise of more than 14% above the 40,000 level, at $40,031 per coin. However, it was not that much effective as it is now trading back under 40K.

According to CrytoQuant data, in the past 24 hours, the inflow of stablecoins from multiple cryptocurrency exchanges has reached 5.28 billion U.S. dollars, which is a record high and provides a basis for crypto whales to do more on dips.

After all, as the U.S. government tightens regulation of cryptocurrency, it is stipulated that since 2023, any cryptocurrency transfer involving an amount of US$10,000 or more must be reported to the IRS. From the government's standpoint, officials believe that this new regulation will help "better protect investors," but it can be predicted that the effective code will likely suppress the bulls.

In addition, the Fed will release a research report on central bank digital currency (CBDC) in the summer. According to Chairman Powell's words, the current problem facing the Federal Reserve is "how to carry out technological innovation in the current banking system to provide a safe, effective, dynamic and efficient payment system. Not only that, the Federal Reserve, the U.S. Office of the Comptroller of Currency (OCC), and The Federal Deposit Insurance Corporation (FDIC) is also considering the establishment of an "interagency sprint team," which will include creating a legal definition for U.S. cryptocurrency and preventing illegal activities such as money laundering and ransomware payments.

Bitcoin technical overview

Technically, BTC moves in a clear downtrend, as it is trading between the middle and lower line of BB, while RSI at 40 is also supporting the trend. However, the movement has not too much power as it was sharp in past days. Pivot point sits at 39,225, and breaching this level, it will bring the following targets at 35,850, 31,500, and then 28,200 as the first, second, and third supports in the spotlight. On the flip side, first resistance at 43,400 as the first resistance can help the market bulls to get more strength, at least in a short time. 

Bit Coinn

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Tags: BTC
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