Hello guys,
The United States Secretary of Treasure Nominee, and former SEC chairman, Janet Yellen suggested "curtailing" cryptocurrencies due to the risk they pose for the system. She pointed fingers at Bitcoin calling it a proxy for illicit activities. In the meantime, the DXY index made a sharp upside reversal reaching 90.703 during intraday.
These two events impacted the BTC/USD pair in a negative way and the entire crypto market sunk on Wednesday, erasing double-digits during the worst part of the crash.
I cannot comment on whenever this was the main reason for the selloff or it was the symmetrical triangle on the daily and lower timeframe charts that was finally broken downwards, but still, sometimes we need to look for more than one root causes for a particular event.
Actually, BTC was trading as low as $33,741 back on Sunday, touching the lower limit of the symmetrical triangle formation on the daily chart. On Monday, it hit the $34,800 horizontal support once again and fell below the 100-day EMA on 4-hour.
Then yesterday, it jumped to $37,700 and the 61.80% Fibonacci retracement level for the second time in the last few days, suffering a heavy rejection. The symmetrical triangle was broken down and that was all she wrote.
The first level of support at $34,800 was broken, but BTC found stability in the $33,800-$34,000 area before recovering to $35,000 as of the time of writing this.
What I will be looking for from here will be a daily close above $35,000 and recovery to the $36,200 zone where all major short-term EMAs are now situated on the 4-hour chart. A drop below $33,800 will open the door for further decline to the $30,800-$31,400 zone and will put the mid-term uptrend in risk
The United States Secretary of Treasure Nominee, and former SEC chairman, Janet Yellen suggested "curtailing" cryptocurrencies due to the risk they pose for the system. She pointed fingers at Bitcoin calling it a proxy for illicit activities. In the meantime, the DXY index made a sharp upside reversal reaching 90.703 during intraday.
These two events impacted the BTC/USD pair in a negative way and the entire crypto market sunk on Wednesday, erasing double-digits during the worst part of the crash.
I cannot comment on whenever this was the main reason for the selloff or it was the symmetrical triangle on the daily and lower timeframe charts that was finally broken downwards, but still, sometimes we need to look for more than one root causes for a particular event.
Actually, BTC was trading as low as $33,741 back on Sunday, touching the lower limit of the symmetrical triangle formation on the daily chart. On Monday, it hit the $34,800 horizontal support once again and fell below the 100-day EMA on 4-hour.
Then yesterday, it jumped to $37,700 and the 61.80% Fibonacci retracement level for the second time in the last few days, suffering a heavy rejection. The symmetrical triangle was broken down and that was all she wrote.
The first level of support at $34,800 was broken, but BTC found stability in the $33,800-$34,000 area before recovering to $35,000 as of the time of writing this.
What I will be looking for from here will be a daily close above $35,000 and recovery to the $36,200 zone where all major short-term EMAs are now situated on the 4-hour chart. A drop below $33,800 will open the door for further decline to the $30,800-$31,400 zone and will put the mid-term uptrend in risk
