BTC/USD seesaws near 13-day low amid growing pessimism for Cryptos
- The US further tightens its grip over the Cryptos by proposing a ban to tech companies entering any such initiatives.
- Break of 5-week old support-line drags the quote towards 50-day EMA.
Cryptos continue portraying a sea of red after the news broke that the US is preparing to restrict top-tier technology companies from working as financial institutions or issuing digital currencies. The BTC/USD pair drops to the fresh 13-day low as it trades near 10,385 during early Monday.
As per the Reuters’ report, the US Democratic lawmakers are considering a proposal to prevent big technology companies from functioning as financial institutions or issuing digital currencies. The news exerts additional downside pressure on the Cryptocurrencies as the US Republicans, led by the President Donald Trump, are also against the digital currency.
Recently, the President Trump criticized digital currencies and the Facebook’s effort to promote it via Libra. The news couldn’t hold markets by back as it offered additional publicity to the Cryptos.
Limiting the downside is the US Dollar (USD) weakness on the back of speculations that the US Federal Reserve is on its run towards monetary policy easing after holding tightly for a long period.
Technical Analysis
Having successfully breached a 5-week old ascending support-line, 50-day exponential moving average (EMA) level of 10,025 seems immediate support to watch ahead of concentrating on the 10,000 psychological magnet. Meanwhile, July 09 low surrounding 12,100 can limit the pair’s nearby advances ahead of highlighting recent highs close to 13,200 and 13,860.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
