Bitcoin – Daily Chart
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Investing.com – After plunging to a low of $26,600 last Thursday, the lowest since December 2020, Bitcoin has regained ground, peaking at $31,400 on Sunday, with an 18% gain since the week’s low last.
However, this rebound, while encouraging, did nothing to improve Bitcoin’s situation from a chart perspective. First of all, we note that this rebound has already been reduced by the first exchanges on Monday, moving towards $30,400 this morning.
But even if the rally resumes, there will be many obstacles in Bitcoin’s way before the cryptocurrency once again shows a more neutral profile. The $32,500/$33,000 area is the first of these resistances, but another larger barrage (which was previously a key support) lies higher near $37,500.
On the downside, a return below $30,000 would expose last week’s low towards $26,600. Then, few supports can be spotted before the major psychological threshold of $20,000.
Why Bitcoin Crashed Last Week?
Recall that in addition to generalized risk aversion, and the rise of the Dollar, Bitcoin and the entire cryptocurrency market suffered last week from the disaster that affected the network and its UST and LUNA cryptocurrencies, which could not never get up.
This affair, in addition to having seen hundreds of millions of dollars go up in smoke, has largely tarnished the image of the cryptocurrency market and the little trust the public has in it.
El Salvador welcomes representatives from 44 countries to discuss BTC
The weekend was then fairly quiet in terms of crypto news, aside from the announcement by El Salvador’s President Nayib Bukele, who warned this morning on Twitter (NYSE:) that 32 central banks and 12 financial authorities from 44 countries will meet on Monday, May 16 to discuss financial inclusion, the digital economy, the banking of the unbanked, the deployment of bitcoin in El Salvador and its benefits in the country.
Remember that last year El Salvador became the first country in the world to give Bitcoin legal tender and officially make it a currency, which did not fail to arouse criticism.
What are the potentially influential events on Bitcoin this week?
Finally, when it comes to potentially influential economic events on Bitcoin this week, monetary policy will remain the focus, with speeches from Lagarde and Powell tomorrow Tuesday, May 17, and the Minutes of the ECB’s latest meeting. Thursday, May 19.
It should also be recalled that Bitcoin has shown a very clear correlation with the US technology stock market index in recent weeks, which should therefore also be closely watched by investors interested in Bitcoin this week.