Bitcoin’s recent bull run has been halted as the cryptocurrency experiences a sudden drop in value. Over the past 48 hours, Bitcoin has lost over 5.5% of its value, dropping from $30,000 to $28,635 at the time of writing.
This pullback follows a healthy run that saw Bitcoin charge through the $25,000 price region for the first time since June 2022. The momentum associated with the move attracted higher projections for Bitcoin’s price, with several analysts suggesting that the bull run leading to the next halving event may have kicked in.
However, the sudden price drop in the past 48 hours has left users probing the authenticity of the projected bull run. Investors are concerned whether Bitcoin’s price will experience another significant pullback before climbing higher.
The drop in Bitcoin’s price started after Gary Gensler, the SEC Chair, testified before the United States House Financial Services Committee. During the testimony, Gensler did not clarify the commission’s stand on Ethereum’s classification, whether it is a commodity or a security. This lack of clarity has left investors worried, adding to the regulatory uncertainty surrounding cryptocurrencies.
Despite the uncertain macroeconomic climate, Bitcoin’s technical analysis suggests the uptrend holds significant momentum. The intraday hourly chart shows a bullish divergence between Bitcoin’s price and the Moving Average Convergence Divergence (MACD) histogram. The MACD lines are also in the oversold region, suggesting that the price may turn around soon to resume the upward trend.
Investors may be concerned about the sudden drop in Bitcoin’s price. However, technical analysis suggests that the uptrend remains valid. So far, Bitcoin’s price has struggled to fall below the powerful support at $28,345. Aggressive traders could find this a suitable area to increase their stake in the cryptocurrency. They could consider it a valid dip from which the price could reverse and continue upwards. However, a successful break below that level could see BTC drop lower toward the $26,650 support region.
It is important to note that the views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence before making any investment decisions. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
In conclusion, Bitcoin’s bull run has been halted amid SEC’s regulatory uncertainty. The sudden drop in Bitcoin’s price has left investors concerned about the cryptocurrency’s future. However, technical analysis suggests that the uptrend remains valid, and aggressive traders could find this a suitable area to increase their stake in the cryptocurrency.
