Bitcoin price is down from its all-time high by 43 per cent. However, the cryptocurrency has been trading in a sideways market in the past few days, at around $40,000. In today’s trading session, Bitcoin has dropped by more than 2 per cent and is currently trading below $40,000.
The current drop comes amidst an increased interest in Bitcoin from countries worldwide. The Central African Republic announced Bitcoin as an official currency this month, becoming the first African country to adopt the cryptocurrency. The African country joins Els Salvador as the only other country that has officially made Bitcoin a legal tender.
Other countries such as Cuba and Mexico have already started the slow process of integrating Bitcoin into their platforms. Cuba is allowing licensed exchanges to use Bitcoin, and Mexico has indicated an interest in the gradual move towards greater Bitcoin adoption.
However, despite the positive outlook of Bitcoin in the above countries, regulations have also been proposed in many other countries. This includes the US, which has already shown a willingness to implement regulations that would impact Bitcoin.
In addition, cryptocurrency regulation has become a frequent point of interest lately for U.S lawmakers and government agencies. This has included the recent inclusion in the Infrastructure bill, which has called for more regulation. If these regulations pass, there is a high chance that they will impact Bitcoin prices and likely result in a long-term bearish move.
The past few days have seen Bitcoin trade in a sideways market, with today’s trading session resulting in a more than 2 per cent drop. However, Bitcoin is still in a strong bearish trend, which has resulted in a 14 per cent drop in April. The Williams Alligator also shows the trend to be highly bearish.
Therefore, I expect Bitcoin to resume the bearish trend using the daily chart below. In addition, there is a high likelihood of the Bitcoin prices continuing to struggle in the market. This will likely result in another drop, seeing the cryptocurrency trading below $35,000 for the first time since January 24, 2022.
This post was last modified on Apr 29, 2022, 15:46 BST 15:46