The broad market and Bitcoin see early pressure with increased regulatory scrutiny threatening market players’ appetite following roller-coaster events over the past week.
- Sunday sessions saw BTC on a 3rd successive day of gains, ending the week with an 8% loss. Bitcoin witnessed a 7th sequential week of red.
- While the space recovered from the USDT and LUNA fallout, massive breakouts weren’t visible, with regulatory scrutiny joining the spectrum.
- BTC’s technical indicators remain bearish as Bitcoin stayed beneath the 50-dayEMA.
Bitcoin followed Saturday’s 2.7% gain with a 4.15% uptick yesterday, closing the week 8% down to $31,296. Anguish over LUNA and UST eased towards the weekend. The bellwether crypto tested 50-day Exponential Moving Average before retracing today morning.
Though market anxiety over Terra’s fallout eases, magnified regulatory moves test investor sentiment.
Regulators Respond to LUNA Collapse and UST De-Peg
This week, South Korean lawmakers debated crypto laws while planning to consider how top jurisdictions go about cryptocurrency regulations. The nation’s Digital Asset Basic Act targets to protect investors and will start enactment in 2023, with implementation in the following year.
SEC’s Gary Gensler and Janet Yellen of the US Treasury talked about crypto regulations. As Yellen called from cryptocurrency watchdogs, Gensler saw an opportunity to lay claim on the market (again). For now, crypto investors need to consider stiffer regulatory threats as that can trigger more bearishness.
Bitcoin Price Action
While publishing this blog, Bitcoin traded at $29,699, losing 0.05% over the previous day. Bullish actions early on Monday saw the token climbing to $31,299 before sliding lower. The crypto failed to overcome the resistance at the 50-day Exponential Moving Average early today.
Bitcoin needs a move past the pivot of $30,721 to eye the initial massive resistance at $31,985 before reclaiming $32,000. However, improved broad market sentiment is essential to support a move to $31,000.
Nevertheless, bearish tendencies can main failure to challenge $30,000. Losing sub-$29,000 would push the crypto towards the $28,777 support. Also, Bearish remained bearish as it stayed beneath the 50-dayEMA at $31,333.
Early sessions on the day had the 50-day drifting back from 100-dayEMA. Also, the 100-day dropped from 200-dayEMA, revealing bearishness. Overcoming this area would support leg-ups to $35,000.