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.

 

 

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