- The Bitcoin price has started the week on a fairly bearish note and is currently down by over 2%.
- BTC has been quite bearish lately and could slip below $46,000.
The Bitcoin price continued to drop as it got off to a fairly bearish start to the week, with sellers looking to drive BTC below $46,000. BTC had registered a significant drop on Friday as well when BTC slipped below the 200-day SMA and settled at $461,31. However, the price recovered on Saturday, rising by 1.57%, before dropping back into the red on Sunday and settling at $47,109. The current session has seen BTC continue to drop, with the price currently down by over 2%.
Bitcoin Price Chart Indicates BTC Could Drop Below $46,000
The Bitcoin price started the previous weekend on a fairly bullish note, rising by 4.52% on Saturday and settling at $49.437. BTC continued to rise on Sunday as the price moved up to $50,134, registering an increase of 1.41%. However, the price fell back on Monday, dropping by over 6%, slipping below the 200-day SMA and settling at $46,885. However, on Tuesday, the price was back in the green, rising by 3.25%, pushing back above the 200-day SMA and settling at $48,409. BTC continued to push up on Wednesday, rising by 0.86% and settling at $48,825.
Image: BTC/USD daily
After rising to $48,825, the Bitcoin price fell back into the red on Thursday, as sellers pushed the price down by almost 3% to $47,467. BTC continued to drop on Friday, slipping below the 200-day SMA and settling at $46,131. However, the weekend saw a slight recovery on Saturday, with BTC rising by 1.57%, moving to $46,856, and then to $47,109 on Sunday. The current session sees BTC down by over 2%, with sellers having breached $46,000.
We can see that the Parabolic SAR is currently bearish, indicating that the price could drop further.
Looking at IntoTheBlock’s IOMAP for the Bitcoin price, we can see that BTC faces strong resistance at around $48,099. At this price level, over 2.3 million addresses have sold more than 1 million BTC.
Image: IntoTheBlock
The 4-hour Bitcoin price chart shows us that BTC had pushed up t0 $48,714 on the 15th, pushing above the 20-bar SMA. BTC continued to push higher from this level, as it moved above the 50-bar SMA and settled at $49,248. However, BTC could not stay at this level and fell drastically, slipping back below the 20 and 50-bar SMAs and dropping to $46,126 on the 18th. The price pushed up from this level, rising to $47,118 and then to $47,761, pushing back above the 20-bar SMA on the 19th. However, BTC fell back in the red once again, slipping below the 20-bar SMA, dropping to its current level of $45,970.
We can see that the Parabolic SAR and MACD have both flipped to bearish, indicating that the price could drop further.
Image: BTC/USD 4-hour
Bank of England Is Worried About Crypto Again
The Bank of England has once again warned of the potential threat that crypto-assets pose to the world’s existing financial system. According to a report by BBC News, the UK’s central bank issued a warning about the risks of cryptocurrency and the impact the industry could have on existing financial systems.
Sir Jon Cunliffe, deputy bank governor, told the BBC that a price correction in the crypto markets could have profound ramifications for other industries:
“The point, I think, at which one worries is when it becomes integrated into the financial system when a big price correction could really affect other markets and affect established financial market players.“
He added:
“It’s not there yet, but it takes time to design standards and regulations. We really need to roll our sleeves up and get on with it, so that by the time this becomes a much bigger issue, we’ve actually got the regulatory framework to contain the risks.”
The bank governor warned that the risks involved in crypto would grow proportionally with its adoption. He noted that at present, only 0.1% of UK household wealth was tied up in crypto-assets, with 2.3 million UK citizens holding crypto investments (at an average value of £300 per person).
The Bank of England has previously railed against the impact of crypto-assets, claiming in October that Bitcoin could trigger financial instability in the UK. Sir Cunliffe argued that crypto’s smaller market capitalization ($2.3 trillion versus $250 trillion in the global financial system), could still create a tidal wave effect, as evidenced by the housing market collapse triggering the 2008 recession.
Bitcoin Book Gets Funding On Kickstarter
A group of eight Bitcoin enthusiasts recently launched a Kickstarter campaign to publish an educational book for America’s federal policymakers. The campaign aimed to reduce their reliance on the traditional media narrative on cryptocurrencies. The campaign managed to attract $23,151 in funding, nearly five times the goal of $5,000.
The book was conceptualized soon after the US House of Representatives passed the $1.2 trillion bipartisan infrastructure bill, which mandates stringent reporting requirements for the crypto community.
According to the authors:
“We set out to write a book to help policymakers understand where Bitcoin users are from and what they care about. We want to dispel the notion that it's a nerd money and show how it's impacting so many people in America.”
The Kickstarter was launched by Jimmy Song, a Texas-based crypto entrepreneur and seasoned author. Other authors included Annaliese Wiederspahn, Gary Leland, Pete Rizzo, Amanda Cavaleri, CJ Wilson, Charlene Fadirepo, and Lamar Wilson.
Per the schedule, the manuscript for the Bitcoin book has been drafted. It will be ready by the end of 2021. By January, the authors intend to have the audiobook and paperback available for sale, which will be supported by a “book launch event in Washington DC to promote this book.”
While the Bitcoin book authors have already accounted for the initial funding of $5,000 for the book’s production, the additional funding will be invested in the book launch party.
BIS Innovation Hub Boss: Expect Global Crypto Regulatory Framework In 2022
In his recent interview with The Financial Times, BIS Innovation Hub head Benoit Coeure revealed that a global regulatory framework for cryptocurrencies would likely be ready in 2022. Coeure noted that it’s high time for comprehensive regulation, given that crypto is moving into the mainstream at a rapid pace.
The former executive board member of the European Central Bank appeared to be particularly concerned by the mushrooming growth of the decentralized finance sector (DeFi) that poses a threat to traditional finance (TradFi), thus creating “systemic risks.”
The prominent French economist claims different jurisdictions could be on track to create patchy approaches to regulating crypto that will be inefficient on a global scale. However, he believes there is still enough time to steer clear of regulatory arbitrage and create a regulatory framework for the nascent asset class.
Privacy concerns could be the biggest deterrent to strong cooperation on crypto:
"The final decisions of sovereign states will be... a balance between sovereign strategic considerations on the one side and considerations about the good functioning of the financial system on the other."
Coeure says that consumer protection should be a top-of-mind priority for policymakers.
He proposed banning pension funds from having exposure to cryptocurrencies to avoid risks linked to the mercurial asset class.
"It seems to be contrary to the kind of safety that you expect from a pension fund."
In March, Coeure opined that Bitcoin was a failed currency due to its volatility.
Bitcoin Price Is Expected To Reach These Levels
Looking at the Bitcoin price chart, we can see that sellers have managed to push BTC below $46,000 at the time of writing. If the current sentiment persists, we could see BTC drop to $45,500. However, there is a chance that BTC could recover and push back above $46,000.