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Investing.com – Wednesday’s sharp correction continued into Thursday, resulting in a sharp deterioration in the technical backdrop.
Recall that the fell to a low of $28,035 on Thursday, and has since rebounded very little, standing at $28,230 at the time of writing, down 2.4% since yesterday and more. 8% over one week.
The prospect of seeing Coinbase leave the USA worries Bitcoin
Regarding the reasons for this weakness of Bitcoin, which we have seen on most other cryptocurrencies as well, we will first recall that a slight aversion to risk dominated the markets, as evidenced by the closing downside of most global stock markets.
Additionally, some analysts have pointed to the fact that the crypto platform Coinbase Global Inc (NASDAQ:) has been granted a license to operate in Bermuda, and could open an unregulated, country-based crypto derivatives platform as early as next week.
The move comes as Coinbase has been embroiled in a fight with the US financial regulator, the SEC, which accuses it of failing to comply with securities laws. From there to think that Coinbase is preparing to leave the United States purely and simply, there is therefore only one step.
However, if Coinbase, which is the largest crypto platform in the USA, leaves the country, there is a good chance that many traders will leave the market, uncomfortable with decentralized or unregulated platforms by the USA. This would in fact significantly reduce the size of the cryptocurrency market, which explains the bearish impact on Bitcoin yesterday.
The technical background for BTC/USD is deteriorating
However, as seen in the graph below, yesterday’s fall caused bitcoin to break below the lower limit of the bullish channel that had been guiding its evolution since around mid-March.
Now, the $28,000 threshold should be seen as immediate support for BTC, ahead of the zone formed by the $27,000 threshold, the 50-day moving average at $26,795, and the March 27 trough at $26,540.
If bitcoin resumes the upward path, the $28,750-29,000 zone will be the first hurdle to consider, before the key $30,000 threshold, then last week’s high near $30,900, associated with the round threshold of $31,000.