Bitcoin continues to deepen its losses on Wednesday with a pullback towards $56,000. The cryptocurrency has been hurt by concerns over a potential tightening of regulations in the U.S., while the use of Bitcoin has been singled out in money laundering cases.
Furthermore, flexible workspace provider WeWork announced on Tuesday that it would begin accepting some cryptocurrencies for payments, but despite this, it has not helped Bitcoin regain its footing.
The craze for speculative assets and so-called growth stocks has allowed both investment banks and individuals to reap significant profits. This same phenomenon has also supported the new upward cycle seen in the price of bitcoin and other cryptocurrencies, allowing new all-time highs to be reached for many of them.
From a technical perspective, Bitcoin was in a bullish momentum well within a channel up until last week. However, it is clear that the market has breached the lower bound and the 50-period moving average that has supported the price since the beginning of the year.
In conclusion, we must now be more cautious about the asset, as Bitcoin has been capping around $60,000 for quite some time without accelerating to new highs. Thus, a breathing phase towards the support levels and then a stronger start would be rather healthy and legitimate.
Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.