© Reuters
Investing.com – After spending most of Tuesday consolidating losses from the previous day, the rebounded in the evening, managing to regain the briefly lost $27,000 threshold, but the cryptocurrency is already showing signs of fatigue and continued rebound looks uncertain on Wednesday morning.
Recall that Bitcoin and the cryptocurrency market in general were heavily penalized on Tuesday evening by the announcement of a lawsuit by the CFTC, an American financial regulator, against Binance, the largest crypto platform in the world. Regulators blame the company for several shortcomings, and call for its banishment from the USA.
Crypto Worry Eases as CFTC Lawsuit Shockwaves Against Binance
These announcements have indeed sent shockwaves through Bitcoin and cryptocurrencies in general, showing once again how much of a threat regulators consider the crypto industry to be. However, this does not bode well for the future, while everything remains to be done in terms of regulations with a currently very vague framework which makes it difficult for a crypto company to be sure to respect the regulations and that easy for regulators to claim they have been broken.
Regarding the next important events for Bitcoin and other cryptocurrencies, it should be noted that this day of Wednesday will be quite light from a macroeconomic point of view, and that the day tomorrow will also be the occasion for few key events. . On the other hand, Friday will be particularly important, with the CPI of the Euro Zone, and especially the PCE price index of US household expenditure, the preferred measure of inflation of the Fed.
These data could indeed have a major impact on expectations for the next decisions of the Fed and the ECB, and therefore the price of cryptocurrencies such as Bitcoin. This also implies that until then, crypto traders might prefer to play it safe by avoiding pushing Bitcoin too much up or down.
Bitcoin still shows a consolidation profile in daily data
From a chart perspective, neither Bitcoin’s weakness on Monday night nor the slight rebound seen since Tuesday had a big impact on the trend, as seen in the chart below.
The cryptocurrency is indeed still in a consolidation phase at around $26,500 – $28,800. At $26,500, the balance will tip in favor of the sellers, with the risk of a fall to $25,200 / $25,000. If this threshold is broken, the Bitcoin trend will turn negative.
In the event of a rise above $28,800, let alone $29,000, the major psychological threshold of $30,000 will be the next target.