Bitcoin price has been under intense pressure for the past few days as investors chew on regulatory activity in the stablecoin sector and rising inflation in the US. The largest cryptocurrency by market capitalization has slipped by more than 4% in the past week. The total volume of BTC traded in the past 24 hours is approximately $22.44 billion, falling more than 0.50%.
Worried investors have been closely watching the Bitcoin price for the past few days as the largest cryptocurrency shows signs of exhaustion. The overall crypto market has been under intense pressure for the past few days amid regulatory concerns in the United States.
According to some analysts, most digital assets are in the red as investors turn to less volatile assets for better times. The drop in the crypto market comes in the wake of the SEC’s regulatory concerns. According to analysts, SEC is not backing down on ‘regulation enforcement’.
The US Securities and Exchange Commission (SEC) has been investigating the popular cryptocurrency exchange Kraken for alleged securities law violations. Coinbase CEO Brian Armstrong took to Twitter to deliver a thread that he called “rumors that the SEC would like to get rid of crypto staking in the US for retail customers.”
Bitcoin was trading lower on Tuesday after the US Bureau of Labor Statistics (BLS) announced an increase in January’s CPI YoY. Data by BLS shows that over the last 12 months to January, the Consumer Price Index (CPI) increased 6.4% before seasonal adjustment.
A spike in inflation points to an aggressive interest rate hike by the Federal T5eserve in a bid to curb inflation. Earlier this month, Fed Chair Jerome Powell announced that the Fed could hike its rates throughout 2023 to help fight inflation. An increase in interest rates is bad for riskier assets such as cryptocurrencies.
Bitcoin Price Analysis
Bitcoin price has been hovering below the important support level at $22,000 for the past few days, pointing to signs of exhaustion. On the 4-hour chart, the BTC price has moved below the 25-day and 50-day, while its Relative Strength Index (RSI) has moved below the neutral level.
Therefore, the Bitcoin price is likely to continue falling and is likely to breach the important support level of $20,000. If this happens, sellers will be eyeing the support at $18,674.75. However, a flip above the key level at $22,000 will invalidate the bearish view.