Bitcoin analysis for April 20, 2021
Looking at the Bitcoin chart on the hourly time frame, we see that it has found support at $ 53,500 for now. after that, we have a smaller rejection to the current $ 55,500, where we test the moving averages whose support we are looking, if we want to return to the bullish trend. If there is a break above the moving averages, the first target is $ 58,000, which has twice been resistant and an obstacle to continuing the bullish trend. If we overcome this obstacle, we climb to the psychological level of $ 60,000.
For a possible continuation of the bearish trend, we need to break the support zone to $ 53,500 to look at the psychological level at the price of $ 50,000. Following the MACD indicator, we see that the bearish signal is in effect and that it is directing Bitcoin to the lower targets on the chart.
For now, we have a smaller curvature of the blue MACD line upwards, and we can expect some consolidation around moving averages, which can move the MACD to a bullish position, reducing the pressure on Bitcoin.
The President of the United States administration, Joe Biden, is working on a new regulatory approach for cryptocurrencies. Fox News correspondent Charles Gasparino quoted several sources close to the Biden administration, saying that it was in the early stages of developing a regulatory approach to crypto markets. The American journalist further hinted that the legislative framework regarding cryptocurrencies is being “discussed” by the Biden administration.
Former Goldman Sachs banker and cryptography professor Gary Gensler, who was recently confirmed as the new head of the Securities and Exchange Commission (SEC), is now awaiting further Treasury guidelines for the overall policy before developing a more concrete regulatory approach to crypto. Gasparino suggested that the regulations could come very soon but did not clarify the new law.
Based on Gasparin’s discussion with his sources, he believes cryptocurrencies are there to stay, and it is unlikely that a new type of property would be banned. Treasury Secretary Janet Yellen is leading the approach, Gasparino added.
Despite optimistic views on the cryptocurrency regulations provided by Gasparino, Finance Minister Yellen previously issued a warning in February about the dangers that Bitcoin poses to investors and the public. Yellen stated that she is afraid that cryptocurrencies are often used for illegal finances and pointed out the large amount of energy needed to process Bitcoin transactions. She added that cryptocurrencies are a highly speculative asset class and that people should be aware of their volatility.
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