The last few days have been volatile for cryptocurrency traders. The BTCUSD rate fell to the USD 27k support line and rose to USD 30k.
Bullish sentiment was fueled by new fears in the banking sector: First Republic Bank’s Q1 report showed a significant outflow of deposits, although earlier USD 30 billion was poured into the bank to calm depositors. WSJ writes about the lack of a simple solution. Stocks plummeted more than 50%, eroding confidence in the banking sector but boosting confidence in cryptocurrencies.
The bearish mood was driven by:
→ the news about the requirements of the US Internal Revenue Service (IRS) to the Kraken cryptocurrency exchange to issue the data of its users to the court. The Kraken exchange refused to comply with the requirements, believing that the IRS had gone beyond what was permitted.
→ the Bitrue Incident: A technical glitch caused the XRP price to drop to zero, resulting in the liquidation of its clients' positions.
Looking at the BTCUSD chart, it can be noted that the psychological level of USD 30k looks like a serious resistance. But with support from the USD 27k level (1) and the median line of the rising channel (2), the bulls may try to take a new assault.
This article represents FXOpen Companies’ opinion only, it should not be construed as an offer, solicitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
