Bitcoin Status Resulted in Mounting Fears from Investors

Bitcoin (BTC) has placed into some stability in time after its capitulatory selloff seen during the past few days. And this is with bulls stepping up and ardently defending against a decline below $8,800. Also, it seems to have become a near-term support level for the cryptocurrency.

Now, analysts are noting the current pullback has made BTC’s price exactly right where it must be. Still, it is maintaining over a key growth curve that has been guiding its decade long uptrend.

In addition to that, this happened as investors started to develop their fears. Usually, this is a bullish sign used as a counter-indicator.

Recently, Bitcoin is trading down just above 1% at its current price of $8,880. This marks a notable drop from daily highs of more than $9,300.

Notably, it is also equally important to know that BTC has found solid support within the mid-$8,000 region. And the crypto’s bulls showed a strong defense of this level in the intense overnight selloff.

During the near-term, crypto is still in a precarious territory despite its stability. And Bitcoin’s ongoing downtrend is doing significant damage to the highly bullish market structure, formed throughout the first two months of 2020.

Aside from that, this new movement has also created damage to the euphoria of many investors. And this is because of crypto’s fear and greed index indicating that investors are growing increasingly fearful.

Famous cryptocurrency analyst Mr. Anderson discussed this in his recent tweet. He stated, “I would have expected an ‘Extreme Fear’ reading. Fear is reasonable at this stage. BTC is testing is Daily 200s and its 21-week ema w/ a monthly close this week as well.”

Then, he also warned expected turbulence that will go up and down.

BTC’s Trading Status

Moreover, as of now, Bitcoin is still trading significantly over a critical growth curve. Its recent trading phase marks a bout of consolidation before it could start to climb higher.

Another prominent cryptocurrency analyst, Dace the Wave, tweeted, “Zooming out, price is exactly where it is meant to be (was predicted to be on the basis of the log growth curve and the lengthening cycle).”

Also, he added that the macro picture must serve to relieve anxieties and restrain excitement at the same time with the shorter-term volatility.

In the near-term, if Bitcoin further inches lower, it is possible that investors’ fear will continue to develop. And it might result in it acting as a bullish counter indicator.

A Meeting to Learn Stablecoin

Meanwhile, American financial regulators sat down with major stablecoin projects to understand the industry more deeply.

On February 26, the Commodity Futures Trading Commission’s Technology Advisory Committee held a public meeting. And they discussed stablecoin, cryptocurrency insurance, custody practices, and cybersecurity.

Moreover, JPM Coin, MarkerDao, and Paxo attended the meeting. And they talked over different aspects of stablecoins during the event.

Also, the committee mentioned a lot of topics on stablecoin. And Charles Cascarilla, CEO of Paxos, first presented about the use cases of two Paxos’ current stablecoin projects.

Then, Deputy Division Chief in the Monetary and Capital Markets Department of the IMF, Tomasso Mancini-Griffoli, highlighted some of the public policy that must take into considerations with stablecoin. Moreover, these policies include monetary policy control, Financial stability, efficiency, privacy, competition, consumer protection, and financial integrity.