Bitcoin Price Backpedals Below $29,000 – What Caused BTC To Lose Steam Today?
The price of Bitcoin and its explosive rise to the top of the cryptocurrency world has been breathtaking. But now, as the alpha coin struggles to break out of the crucial $30,000 resistance zone, investors are starting to wonder: Has Bitcoin’s explosive rally finally run out of steam?
At the time of writing, Bitcoin’s rising price trajectory has suddenly come to a screeching halt in the last 24 hours, with the cryptocurrency’s value down 3.88% to a disappointing $29,901, according to CoinMarketCap.
Source: CoinMarketCap
Adding to its woes, Bitcoin also experienced a seven-day drop of 4.03%, causing investors to question whether the digital asset’s once meteoric rise has come to a screeching halt.
Why Bitcoin Price Dropped Today
Bitcoin’s expected bull market has stalled as the cryptocurrency market experiences a bearish trend triggered by a mix of regulatory ambiguity and a weakened macroeconomic climate.
This negative turn of events was exacerbated on April 18, when Gary Genseler, chairman of the SEC, witnessed before the United States House Financial Services Committee, leaving cryptocurrency traders unsure and apprehensive.
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Investors were particularly concerned about Gensler’s reluctance to clarify whether Ethereum was a commodity or a security, despite being asked several times by committee members.
Source: Getty Images/iStockphoto
This lack of clarity has only added to the growing regulatory uncertainty surrounding cryptocurrencies, casting a cloud of doubt over their future prospects.
BTC struggles to break crucial resistance level
After a period of consolidation around the $28,000 mark, Bitcoin price has launched a determined effort to break through the crucial barrier. resistance level of $30,000. This level is psychologically and technically significant, and its fate is likely to have a huge impact on the near-term direction of the entire cryptocurrency market.
A successful breach of this resistance level could trigger an uptrend that could see Bitcoin rally towards the next significant resistance zone of around $28,500. However, failure to break out could result in a downtrend towards the 50-day moving average at $26,000 or the middle trendline of the channel at approximately $25,000.
Bitcoin (BTC) market cap now at $558 billion on the daily chart at TradingView.com
Despite the uncertainty, bullish investors can take heart in the fact that as long as Bitcoin price remains above the 200-day moving average, the overall market trend will remain positive.
This crucial indicator is essential in determining the overall market bias and provides a glimmer of hope for those who believe in the cryptocurrency’s potential to continue its upward trajectory.
-Featured image from Flickr