Investing.com – Le surprised positively early yesterday morning, gaining roughly $2,000 within hours, after the US Treasury received (reassuring) details of President Biden’s cryptocurrency executive order, which was officially unveiled last night , but then corrected sharply, returning below the key threshold of $40,000.
The executive order will direct federal agencies to adopt a unified approach to cryptocurrency regulation, directing them to work together to address crypto risks — including consumer protection issues, national security implications, and threats to the financial system.
Biden’s decree on cryptocurrencies reassures
But the text also calls for supporting cryptocurrency innovation and ensuring that the United States maintains “technological leadership in this rapidly growing space,” a constructive statement that appears to be behind the move. enthusiasm of cryptocurrency investors.
This is more of a relief, as many feared the order would call for sweeping regulatory crackdowns on cryptocurrency.
Major players in the crypto industry have also shared on Twitter (NYSE:) their positive analysis of Biden’s executive order. Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, called the executive order “constructive.” Circle CEO Jeremy Allaire welcomed the executive order’s focus on the rapid growth of crypto and its calls for “constructive problem solving around known risks that exist with the legacy financial system.”
In the end, more than good news, it is therefore the absence of bad news that seems to have been welcomed on Bitcoin yesterday.
It should also be noted that risk appetite was the dominant theme yesterday, with European stock markets in particular exploding higher, posting their best day in more than two years, a context which also favored the rise of Bitcoin.
As for today, 2 major events are likely to influence Bitcoin and other markets. We are indeed expecting the ECB meeting this afternoon, as well as the US inflation figures, which should once again push the limits, with an annual CPI expected at 7.9%.
But Bitcoin’s gains were quickly reversed
From a technical point of view, Bitcoin’s rise yesterday, despite its magnitude, unfortunately did not drastically improve the cryptocurrency’s chart profile. Importantly, the has already nearly wiped out all of yesterday’s gains, close to $39,000 at the time of writing, after peaking at over $42,600 yesterday morning, thus dropping around .
In the end, the zone around $42,000 should be considered as immediate resistance, before a more significant obstacle on the 100-day moving average, currently at $43,525. Remember that this moving average had stopped the rise of Bitcoin and sent the crypto down on March 2.
And even a return above this 100-day MA would not be enough for us to start talking about a bullish reversal of the daily trend. Indeed, the study of the graph shows that this reversal will only begin to be validated in the event of a return above the $45,500 zone.