Bitcoin
Bitcoin Price is Locked in Consolidation: Make or Break Moment at $37,500
Bitcoin price has been in consolidation mode over the past few days, hinting at signs of exhaustion after its recent rally. At the time of writing, the flagship cryptocurrency was trading 2.28% higher at $36,555.80. Bitcoin’s total market cap has dipped by nearly 2% over the last day to $714.56 billion, while the total volume of the asset traded increased by 48%, which could suggest an increase in selling pressure.
Regulatory Pressure
The cryptocurrency market has been in the red since Tuesday, with major assets such as Bitcoin, Ethereum, Binance Coin, and XRP, recording significant losses. The decline in crypto prices started earlier on Tuesday after Binance founder and CEO Changpeng Zhao pleaded guilty to charges brought against him by the US Department of Justice (DOJ). According to the DOJ, Zhao and others were charged with violating the Bank Secrecy Act and for knowingly violating US sanction laws.
The crypto exchange company is required by the Department of Justice to pay $4.3 billion in penalties and forfeitures. The legal action against Binance was a joint effort by the Commodity Futures Trading Commission (CFTC), the Department of Justice, and the Treasury Department. Notably, the US Securities and Exchange Commission (SEC) was absent.
Even as the Bitcoin price remains bearish, there is a glimmer of hope, as analysts suggest that the legal action against Binance may have cleared the path for the approval of spot bitcoin ETFs. According to some analysts, Binance’s market dominance has been a major hindrance to the approval of the BTC EFTs.
Investors have also been weighing news from another major cryptocurrency exchange platform, Kraken. The SEC allegedly accused of operating as an unregistered broker and that it blended customers’ crypto assets with its own. Earlier in February this year, the Wall Street regulator filed an enforcement action against Kraken, alleging that it sold unregistered securities.
History suggests that regulatory crackdown in the crypto sector leads to a decline in risk appetite among investors, hence lowering the demand for the assets. As such, traders need to trade with caution.
Bitcoin Price Analysis
The daily chart shows that the Bitcoin price has been trading sideways for the past few days after facing rejection at the important resistance level of $37,500. The digital currency has been consolidating between the tight range of $36,500 and $37,500. Its Relative Strength Index (RSI) has dropped below the signal line, indicating an increase in selling pressure, while the Moving Average Convergence Divergence (MACD) indicator remains bearish.
Therefore, the Bitcoin price is likely to continue trading sideways, while holding above the crucial $36,500 level in the ensuing sessions. Bulls need to gather enough momentum to push the price above the $37,500 level for a potential rally toward the next resistance level at $40,900. On the flip side, a drop below the immediate support level at $34,850 may pave the way for further losses.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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