Bitcoin: Bitcoin slips after hitting a “wall of resistance”

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Bitcoin is striving – and failing – to break through major technical hurdles this week, instead moving towards a major inflection point.

Bitcoin flirted with winning back the $ 40,000 mark all week, but failed, showing strong resistance at that threshold. Additionally, the coin has attempted to close above its 100-day moving average for the past four sessions, but is struggling to do so as well.

Meanwhile, the coin soon appears to be near an inflection point – its 100-day moving average, latest price, and 50-day moving average appear likely to converge.

Bitcoin is back in negative territory after prices hit a resistance wall of around $ 40,000, Craig Erlam, senior market analyst at OANDA, said in a note. Maybe profit taking hasn’t run its course yet. He sees $ 36,000 as a key level to watch – this coincides with the resistance seen in late June and early July and also represents a 50% retracement of the move from recent lows to highs.

Bitcoin fell 6.1% during New York trading hours on Thursday to $ 37,326. This is its lowest level for over a week. He ended a three-day losing streak on Wednesday. The Bloomberg Galaxy Crypto Index, which tracks some of the biggest digital assets, fell by a similar amount.

Bloomberg Although favorable comments from billionaire Elon Musk and Ark Investment Management LLC Cathie Wood, as well as speculation about Amazon.com Inc.’s possible involvement in the cryptocurrency industry, have helped Bitcoin to rise. rally in recent days, it has since retreated. greater attention to regulators. While some strategists said this was due to a pullout, others cited further pressure from Congress to force crypto brokers to report transactions to the Internal Revenue Service, a move that could create unwanted tax bills. . Meanwhile, U.S. Securities and Exchange Commission Chairman Gary Gensler has signaled that regulators might be more open to a Bitcoin ETF if it is based on futures rather than cryptocurrency. herself. Many crypto fans, many of whom were hoping for a different structure, were put off by the news.

We do not advise any of our clients to enter it, said Carter Henderson, portfolio manager at Fort Pitt Capital Group, by phone. Right now, it’s too unknown of a space to be and two, the volatility of wealth management clients to be in an asset class like this doesn’t match the risk profile.

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