Bitcoin drops towards $34,000 after ECB’s Lagarde calls it a speculative asset
The European Central Bank (ECB) President Christine Lagarde called for regulation, as she thinks Bitcoin is a speculative asset, in her speech at the Reuters Online event on Wednesday.
Key quotes
Bitcoin has facilitated "funny business", some reprehensible activity.
Bitcoin needs regulation.
Bitcoin is a speculative asset.
We will have a digital euro.
Hopes it would be no more than 5 years before digital euro.
Bitcoin supported above $34K
Despite the drop from near-session highs of $35,142 on Lagarde’s comments, the downside remains cushioned for BTC/USD.
BTC/USD: 15-minutes chart
A bunch of healthy supports guards the further downside, as observed in Bitcoin’s 15-minutes chart.
The confluence of the 21, 100 and 200-Simple Moving Averages (SMA) around the $34,200 region rescued the BTC bulls.
At the time of writing, the no.1 coin is attempting a bounce back towards the $35K mark, quickly retracing the drop to now trade at $34,720 levels.
The price wavers in a descending triangle formation, with the falling trendline hurdle at $35,025 likely to challenge the recovery.
A sustained break above the latter could validate a triangle breakout, opening doors for a test of the $38,000 level.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
