This is the second time this week that Bitcoin has dropped into the $29,000 range. Analysts have called $30,000 a key level for the largest cryptocurrency by market cap, saying it could fall further if it can’t hold there. Cryptocurrencies are being pressured in the last hours by three crucial factors: US inflation, the crash of LUNA and possible regulatory pressures.
US Treasury Secretary Janet Yellen called on US lawmakers to develop a “coherent federal framework” on stablecoins to address risks that could compromise financial stability.
At a hearing Tuesday by the Senate Banking Committee on the Financial Stability Oversight Board’s Annual Report to Congress, Yellen reiterated her earlier stance calling for a regulatory framework for stablecoins, citing a November report from the Group. President’s Task Force on Financial Markets. Additionally, the Treasury secretary commented that TerraUSD (UST), the third largest stablecoin by market capitalization, was collapsing.
“I think [la situación con TerraUSD] it simply illustrates that this is a fast-growing product and that there are risks to financial stability and that we need an appropriate regulatory frameworkYellen said.
bearish predictions
Trader panic encourages liquidation of positions. A feeling that is not helped by recognized voices within the sector, such as the founder of the Cardano (ADA) network, Charles Hoskinson, who has assured that the market has entered a bearish phase during which no announcement or important news will change the trend. depreciative
For Naeem Aslam, analyst at Avatrade, the recent behavior of bitcoin and the rest of the tokens shows that the ‘bulls’ have lost control of the price even more and it seems very likely that bitcoin will test the $30,000 mark again -where approached on Monday,1 May 10- . “Technically, the structure of bitcoin is bearish, as the lows and highs persist,” said Marcus Sotiriou, an analyst at GlobalBlock.
“The loss of support at US$33,000 complicates its technical aspect in the short term and makes us think of an extension of the bleeding to the level of US$29,290, levels of July last year,” he predicts. César Nuez, technical analyst at Bolsamanía and head of Trader Watch. “Be very careful about abandoning this price level as we could end up seeing a long-term trend reversal.”
Sotiriou adds that the region near the bottom of the range, $28,000 to $32,000, “could be a good area to add to long-term holdings from a risk-reward perspective.” However, if these levels are touched, there is a danger of giving up to $25,000, according to the view of the Luno cryptocurrency exchange. There are even those who warn that the $20,000 could come into play.
Source: Ambito
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