Bitcoin moves away from its all-time high of November 10 this Tuesday and loses ground below $ 61,000, weighed down by various factors. The decline in investor enthusiasm around the Taproot update of the bitcoin blockchain, the demands on US brokers in the new infrastructure law by US President Joe Biden and the statements of Twitter’s CFO have affected the market, leaving drops of 8% on average.
The short-term technical aspect sends indications that ongoing pullback may widen to levels around $ 57,000, the experts warn. In addition, the behavior of the queen of cryptocurrencies in October, when she starred in a rally of more than 40% suggests that the improvements of the update that was activated on Sunday, had already been discounted in the price.
In the ‘altcoins’ red is also imposed, with the ethereum on its way to $ 4,300. Total market capitalization is $ 2.65 trillion.
The pessimism of the last hours has also contributed the signing of the infrastructure law of the US president, Joe Biden, which was made official this morning.
The bill, as approved, will apply stricter rules for companies that handle cryptocurrencies and expand the information requirements for intermediaries. The bill requires that, from now on, digital asset transactions worth more than $ 10,000 be reported to the Internal Revenue Service. A group of senators originally proposed an amendment to the bill that would have clarified tax reporting requirements for cryptocurrencies, but the proposal failed to get approval in August.
In the last hours, bitcoin has also been beaten by the statements of Twitter’s CFO, who has stated that investing in Cryptocurrencies “does not make sense right now.”
Invest some of Twitter’s corporate cash in crypto assets like bitcoin “it doesn’t make sense right now“said Ned Segal in an interview with the Wall Street Journal.” We would have to change our investment policy and choose to own assets that are more volatile, “Segal said, adding that the company prefers to hold less volatile assets such as securities in your balance.
WHAT TO EXPECT?
“It appears that the bitcoin bulls are losing power and are likely to be in battle, especially if the price breaks below the 50-day SMA on the daily time frame,” said Naeem Aslam, analyst at Ava. Trade. Having said that, “bitcoin should have a correction according to the RSI indicator, and that correction has finally arrived, “he adds.
From a technical point of view, “if the price remains above the 50-day SMA, we could see another substantial rally for bitcoin,” the expert continues.
Aslam also points out that “the biggest fear among crypto traders is if crypto winter is here “. “Nobody wants to see another crypto winter, as it is difficult to forget the dire consequences of the previous one.” “On the other hand, what traders have been waiting for is a strong rally, especially given the fact that during this time of year, we usually see a strong rally for cryptocurrencies – of course, with the exception of the crypto winter,” concludes this expert.