Bitcoin - Week 37

Bitcoin falls below $19,000. It seems that the crypto market has translated Jerome Powell’s words into a decline. Indeed, the Fed Chairman denounced “structural problems” on the DeFi ecosystem. This will require more appropriate regulation, according to him. Following his comments, the king of cryptos is falling, approaching the support at $18,300. Let’s take stock of the situation of Bitcoin thanks to this graphic analysis.

Bitcoin (BTC) breaks below $19,000

Bitcoin (BTC) saw a few hours in the red as markets react to Jerome Powell’s comments.

The Fed Chairman was speaking on Tuesday evening during a roundtable on digital finance. According to him, recent crypto declines highlight “structural issues” in the DeFi ecosystem. Therefore, more appropriate regulation is needed.

Following Powell’s remarks, Bitcoin (BTC) drops below $19,000. The drop comes as the crypto king hit a high of $20,338 a few hours earlier. On an H1 chart, this results in the appearance of a “Bart patten”: a rise, then the dump.

Following this drop, Bitcoin moved closer to the critical support around $18,300. The good news is that the buyers reacted which pushed the price away from this area.

As of this writing, Bitcoin is trading at $19,000. Indeed, the US session open allowed Bitcoin (BTC) to rise 5% from yesterday’s low.

Note that Bitcoin was not the only crypto impacted by Powell’s comments. Ethereum also saw a decline, dropping below $1300.

Bitcoin 19,000
Bitcoin / Dollar – source: TradingView

5% jump from the $18,300 support

It looks like the short positions since $20,000 have been closed at support, allowing for a 5% jump for Bitcoin.

This rise intensified at the opening of the US session. Indeed, the price of Bitcoin is once again approaching the $19,550-$19,000 area. This is a level engulfed by a long red candle yesterday. Such a level is not negligible since the price could turn downwards by colliding on this level.

In any case, the movements of Bitcoin for the next few days to come will be crucial. Indeed, the price is approaching the exit of a “large triangle” descending on weekly.

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