Bitcoin - The first target level will be the level of 66.5
On Tuesday, May 4, Bitcoin trading ended with a decline of 6.94% to $ 53,200. The price fell by $ 54,580 in Asian trading. The fall accelerated at the American session on the statements of the head of the US Treasury J. Yellen. One sentence was enough for investors to start selling off American stocks and major currencies.
The dollar index rose to 91.27. The yield on the 10-year bond jumped from 1.557% to 1.598%. The S & P500 fell 1.53% to 4128.5. Since bitcoin is a risky asset, it also fell in price to $ 53,200.
J. Yellen said that interest rates may have to be raised to prevent overheating of the American economy. Then she gave the back saying that she did not forecast an increase in interest rates to curb inflation.
She was the head of the US Federal Reserve from 2014 to 2018 and knows that J. Powell will not listen to her. It all boiled down to being misunderstood.
As the head of the US Treasury, she makes negative statements regarding cryptocurrencies. Making statements about cryptocurrency, Yellen said, “Cryptocurrency regulation is a worthy problem to be solved,” adding that there are not enough regulatory rules pertaining to this market.
During the day, positions worth $ 2 billion were liquidated. Looking at liquidations on long BTC positions, the volume was $ 325 million.
The dollar is supported by an increase in the yield on 10-year bonds, which is 1.603% per annum. The rise in the DXY index is holding back cryptocurrency buyers. At the time of writing this review, BTC costs $ 55,297. On Tuesday, buyers failed to climb to 60 thousand on the first try. A second attempt was made yesterday.
The technical picture remains on the side of bitcoin. ETH is trading near an all-time high of $ 3529. Buyers have four days left to form a consolidation before moving north to a new high of 77K.
Summary: On Tuesday, Bitcoin came under pressure due to statements by J. Yellen and the sale of American shares. Buyers protected the level of $ 53,000 and, according to the latest quotes, the price consolidated above $ 55,000. To continue the upward movement, the price must return to the level of 58300 within 2-3 days. The first target level will be the level of 66.5 thousand, after that - 77 thousand.
Posted Using LeoFinance Beta