Bitcoin prices recovered slightly on Wednesday, but the upside move appears to have been capped after comments from the President of the European Central Bank that called for global regulation of Bitcoin.
Chrstine Lagarde made the comments at a Reuters Next conference, saying that some “funny business” and “”totally reprehensible money laundering activity” had occurred with the use of Bitcoin.
Europe has been at the forefront of demanding for regulation of cryptocurrencies and crypto exchanges. In 2020, all European crypto exchanges began to implement strict KYC protocols in response to a ruling by EU regulators. BTCUSD currently trades 2.45% higher as of the time of writing.
Technical Levels to Watch
Today’s candle bounced off the 38.2% Fibonacci retracement level of 32239.66, and now seems destined to target the 36997.70 (23.6% Fibonacci extension) price level. If bulls take out this level, 38162.46 becomes attainable.
On the flip side, the evolving head and shoulders pattern presents a neckline at 30,000. Only a breakdown of this area will bring in 27668.69, with 24205.95 serving as an additional downside target.
BTCUSD Daily Chart