- Bitcoin struggles to maintain the $30,000 level
- Extreme emotions in cryptocurrencies
Last week, we wrote about the euphoria surrounding BTC, XRP, and other cryptocurrencies after XRP won the case against the SEC in court. Riding the positive sentiment, BTC briefly surged to the $31,800 level, ETH surpassed $2,000, and XRP gained over 80% to reach $0.90.
However, the upper boundary of the consolidation channel for BTC is incredibly strong. The $31,200-$31,400 level served as significant support during the bull market in 2021 and the bear market in 2022. This time, BTC failed to break above it and experienced a sharp decline to around $30,000 on Friday evening. Speculations arose regarding the reason for the drop, but it was most likely a combination of several factors:
- Still ongoing regulatory and macroeconomic uncertainty
- XRP's win against the SEC, which after emotions cooled down, still leaves room for the SEC to appeal and continue the dispute
- Speculations about Binance's weak condition following information concerning layoffs of 1,500-3,000 employees compared to the total employment of around 8,000
The failure to break above the channel despite such significant news may suggest weakness in the bulls and an upcoming short-term downward trend. A key level to watch is the lower boundary of the channel around $29,700-$30,000. A daily close below this level could pave the way towards $27,500.
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