- Bitcoin has dropped by more than 5.5% within the last 48 hours.
- The recent drop started after Gary Gensler testified before the United States House Financial Services Committee.
- Gensler failed to clarify whether Ethereum is a commodity or a security.
Bitcoin’s price met some resistance around the $30,000 region and has experienced a sudden drop. In the past 48 hours, the flagship cryptocurrency has shed over 5.5% of its value and is trading at $28,635 as of writing time.
This pullback comes after a healthy run that saw the top cryptocurrency charge through the $25,000 price region for the first time since June 2022. The momentum associated with the move attracted higher projections for Bitcoin’s price, with several analysts suggesting that the bull run leading to the next halving event may have kicked in.
Users are probing the authenticity of the projected bull run after the sudden price drop in the past 48 hours. Investors are concerned whether Bitcoin’s price will experience another significant pullback before climbing higher.
The recent drop started after Gary Gensler, the SEC Chair, testified before the United States House Financial Services Committee. In the testimony, Gensler did not clarify the commission’s stand on Ethereum’s classification, whether it is a commodity or a security. Reportedly, investors are worried about this lack of clarity, adding to the regulatory uncertainty surrounding cryptocurrencies.
Despite the uncertain macroeconomic climate, Bitcoin’s technical analysis suggests the uptrend holds significant momentum. The intraday hourly chart shows a bullish divergence between Bitcoin’s price and the Moving Average Convergence Divergence (MACD) histogram. The MACD lines are also in the oversold region, suggesting that the price may turn around soon to resume the upward trend.
Investors may be concerned about the sudden drop in Bitcoin’s price. However, technical analysis suggests that the uptrend remains valid. So far, Bitcoin’s price has struggled to fall below the powerful support at $28,345.
Aggressive traders could find this a suitable area to increase their stake in the cryptocurrency. They could consider it a valid dip from which the price could reverse and continue upwards. However, a successful break below that level could see BTC drop lower toward the $26,650 support region.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.