Bitcoin falls below the 200-day average – further losses possible
Bitcoin, the most important digital currency by market size, lost another 3.50 percent to $ 44,373 on Monday. The weekly minus is now 14 percent. Overall, the constellation on the cryptocurrency markets continues to be confusing. Almost a week after the start of bitcoin in El Salvador, Central America, the signs point to consolidation. Investors are also concerned with the latest threat by the US SEC against the Coinbase crypto exchange.
The introduction of Bitcoin in El Salvador and the associated regulatory uncertainties continue to preoccupy investors. Stockbrokers recently acted true to the motto: “Buy the rumor, sell the fact”. In the run-up to the event, the stock exchanges had really excited and on the day of the official introduction finally acknowledged the news with profit-taking on a grand scale. Last but not least, a long squeeze is likely to have favored the sharp decline in the share price. In places, the Bitcoin had lost $ 10,000 within a few hours. By closing out long positions, the price decline was accelerated accordingly.
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SEC triggers unrest – regulatory uncertainties ahead
The uncertainty surrounding the crypto trading platform Coinbase is also likely to keep investors busy this week. The US regulatory authority Securities Exchange Commission (SEC) had threatened the US stock exchange with a lawsuit. The background is that Coinbase would like to start the so-called “lending” which offers a service on which investors can earn interest by lending crypto assets. According to the SEC, the program should be classified as a security, which would make it subject to appropriate securities laws. According to a spokesman, they want to postpone lending until at least October. Since Coinbase acts as a benchmark in the industry, said message carries weight accordingly.
Bitcoin course: it could go on like this
Overall, the technical chart and the fundamental perspective continue to be fragile. Falling below the 200-day average could favor further price losses. The uncertainties surrounding the introduction of Bitcoin in El Salvador and around Coinbase are also initially depressing investors’ minds. It is also noteworthy that bargain hunters keep staying away. This could speak in favor of further consolidation moves.
Falling below the $ 42,000 mark should open further downward advances to the $ 40,000 mark. In the short term, there is still downside potential.
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- Create an IG trading account or log into your existing account.
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- Choose your position size.
- Click Buy or Sell Order Ticket.
- Confirm the order.