Bitcoin price has dropped below a key support as the sell-off in the cryptocurrency market continues. The BTC price has dropped by more than 7.9% today and is trading at $32,697, which is the lowest it has been since January 12.
What happened: The price of Bitcoin is dropping as investors start to question the recent rally and as others take profit. That’s because the BTC is already up by more than 50% this year alone. Also, the recent wavering has pushed more people to lose confidence in the currency.
The Bitcoin price is also focusing on the recent statements from key regulators. Just last week, Christine Lagarde, the head of the ECB, called for European governments to halt the currency’s rise. She cited its anonymity and the fact that it is used to fund crime.
And this week, Janet Yellen asked the US congress to add more regulations to prevent crime. While cryptocurrencies offer anonymity, regulators could go after exchanges, which are real companies.
Bitcoin Price prediction
On the four-hour chart, we see that the BTC price was previously forming a triangle pattern that is shown in blue. Today, it has not only moved below the lower side of the triangle, but it has also moved below the 50-day EMA. Therefore, the bearish breakout could lead to more weakness in the near term. Still, the bearish trend will be confirmed if the price moves below the psychological level at $30,000, which is also last week’s lowest point.
BTC price chart