Bearish Turn in Cryptocurrencies: Bitcoin Pierces $27,000

Bearish Turn in Cryptocurrencies: Bitcoin Pierces $27,000

Ethereum remains in its support zone above $1,800. The rest of the cryptocurrencies fell to 4% in the hands of Polygon (MATIC) and Solana (SOL).

Cryptocurrencies operate with a downtrend this Thursday, May 16. He Bitcoin it pierced US$27,000 and fell 1.2% in the last 24 hours. Meanwhile, Ethereum remains in its support zone above $1,800. The rest of the cryptocurrencies fell to 2.2% in the hands of Polygon (MATIC) and Solana (SOL). What can happen?

Javier Molina, senior market analyst at eToro, believes that the reigning cryptocurrency “is putting pressure on” the first support it presents in the range of US$26,500-US$26,800. “If this area is lost, direct to US$25,000. This level is very important and should not be lost because doing so would break the succession of rising highs and falling lows and $23,500 would be the first of the bearish targets,” he added. On the other hand, if it holds this level, the $28,500 “marks the resistance to beat before going for the highs of the year.”

For his part, Craig Erlam, senior market analyst at Oanda, estimated that bitcoin had recovered “from a stumble” at the end of last week. According to this expert, the break below $27,000 could be an “interesting technical test” for the largest ‘crypto’ in the market, but he sees “some resistance” that may end up being “significant”. “It ran into some support around $26,000 but could be tested again with $25,000 being the next big test below,” Erlam notes.

Why are cryptocurrencies not rebounding?

The cryptocurrency sector suffered the effects of a negative change in sentiment recently amid new bankruptcies such as that of Bittrex and successive problems, technical and allegedly legal, at Binance. “Liquidity concerns and regulatory fears in the US have been a major headwind for bitcoin recently, but bulls are hoping that the ‘hard fork’ will help boost sentiment and push prices back to highs,” he said. James Harte, an analyst at TickMill Group.

Related to this, it appears that regulatory uncertainty will continue to be a concern in the coming weeks. And it is that the Securities and Exchange Commission (SEC, for its acronym in English) assured before an appeals court that the cryptocurrency exchange Coinbase had not demonstrated that the regulator needed to create a new regulatory framework for the digital asset sector.

“The injunction is an extraordinary remedy that requires the petitioner to demonstrate a clear and indisputable right to reparation. Coinbase has not and cannot demonstrate any such right. Neither the securities laws nor the Administrative Procedure Act (“APA”) impose an obligation on the SEC to issue the sweeping new regulations relating to “digital assets” that Coinbase requested.

On the other hand, heInvestors are still pending the US debt ceiling, which could default if Democrats and Republicans do not reach an agreement before June. President Biden will hold a series of meetings on Tuesday to try to move forward on this issue, which Treasury Secretary Janet Yellen has warned could unleash economic chaos if it is not resolved.

Source: Ambito

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