Bitcoin market update: BTC/USD calm after a stormy night
- BTC/USD had recovered significantly above the key hurdle at $13,000 before the plunge to $11,200.
- Fed chair Jerome Powell remarks on Libra linked to the devastating selloff.
Bitcoin dived massively on Wednesday further crashing the hope of seeing it trading at new 2019 highs. Prior to the rise, BTC/USD had recovered significantly above the key hurdle at $13,000. However, no significant headway was made above this level before the bears came in with a bang sending Bitcoin tumbling down towards $11,000.
The drop has been linked to the Federal Reserve Bank chair Jerome Powell comments during his semi-annual testimony on monetary policy presentation before the U.S. House of Representatives Financial Services Committee. Powell said that the announced Facebook crypto “Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability.” He added “I don’t think the project can go forward” unless various concerns are addressed.
The comments although directly connected to Libra, saw Bitcoin tumble 7% during the three-hour presentation. Moreover, the selloff continued all through Wednesday evening and the Asian trading hours on Thursday.
Meanwhile, Bitcoin appears to have found support at $11,200 allowing for a correction to the upside. BTC/USD is trading at $11,555 amid a weakly building bullish momentum. The price is below the Moving averages as an indicator of the still present bear pressure. A correction past $12,000 is needed for Bitcoin to come out of the bear range and relaunch the journey towards $14,000.
BTC/USD 15-mins chart
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
