Bitcoin corrects after the relief rally to $42k, which happened due to the crypto executive order. Biden’s EO was quite positive for the growth of the crypto industry and addressed many concerns, which led to the rally. But it seems that even the recent bearish sentiment cannot be entirely wavered by even such positive news. Bitcoin has even broken below the $39.5k support now. And the bullish pattern that was expected to give some support has turned into resistance.
Bitcoin price action
Bitcoin has broken below the $40k support again, and this is a bearish sign for the market. There doesn’t seem to be any strong level that can give Bitcoin support above $40k. The market sentiment falters when the correction happens at this level, and investors start to bid lower. This has pushed the price below $40k time and again. Unless Bitcoin is able to claim $45k, there wouldn’t be a bullish sentiment, in my opinion.
In the relief rally, BTC made a high of $42,591 which is above the 100 hour SMA. After testing this level, there wasn’t much volume, and the price correction began, which ultimately pushed it below $39.5k in the next 15 hours. If you take a look at the trendline, it also didn’t give any support to the price. Now, if there is a price increase, then the trendline will act as a resistance that needs to be broken before moving up.
On the upside, the first resistance will be around $40k, where the trendline and the previous resistance sits. If we move above $40.5k, then it will be essential to look at the 100 hourly SMA. A good volume will also be required to clear this level.
Why shouldn’t you worry about the correction?
Bitcoin’s price action may not be bullish in the short term, but the general principle of the currency and the new Executive Order speaks in favor of it. The concerns regarding the existence of crypto in the future are also gone, and this new EO could bring in a new wave of investors. Many stakeholders in the industry are satisfied with what Biden has done here.
What are your thoughts as Bitcoin corrects after the relief rally? And do you think that the executive order will change the entire landscape of the industry? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Robert Kiyosaki warns about government seizing all cryptocurrencies
