USD deepens its losses to its lowest level in 7 weeks
USD fell in the European market on Wednesday against a basket of global currencies, to…
After the Bitcoin price grew strongly recently and hit its highest level ever last week, the price began to decline on Sunday (February 21) and the decline continued throughout Monday, which led to the currency’s decline to $ 45,000, losing more than $ 13,000, then began to recover. On Tuesday evening, the most popular digital currency is back near the $ 50,000 level.
While the recovery in the cryptocurrency market is a welcome sight for bullish investors, the Bitcoin price still finds resistance above $ 50,000 and this level has not been confirmed as support.
Bitcoin price reached an all-time high on Saturday (Feb.20) as it rose to $ 58,400, approaching the next massive resistance level of $ 60,000 then the price back to $46000 on Monday.
Fortunately, the leading currency began to recover on Tuesday, rising first to $ 49,600, followed by another correction to $ 45,500, after which, the price of bitcoin rose again, trading below $ 50,000.
At the moment, Bitcoin is experiencing strong volatility that will likely continue for some time, but it appears that the oversold is over, and the currency may be ready to continue rallying again.
The significant decline of the leading digital currency is due to many factors combined, among them, the appetite of many to take profits after successive record gains in the currency, and strong resistance usually rejects the resistance price, the recent news is also likely to be positive but its negative impact on the price.
The recent statement of investor “Michael Perry” said that the government may try to crush Bitcoin, as he believes that the government may be concerned about its currency, which will make it make an actual effort to destroy it.
However, it wasn’t all that bad, with many others saying that Bitcoin is not a threat to the US dollar and the US economy such as Fed Chairman James Bullard who said so, but also stated that he is not optimistic about the future of the cryptocurrency.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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