Bitcoin price movements have upheld the bearish outlook. As we get into a new month, the crypto is likely to continue feeling the pressure from various regulatory bodies in the world. Notably, Chinas heightened effort to crackdown on the crypto industry has become a key challenge for Bitcoin.
Some miners have had to close down their operations as others plan to transfer to other locations. Subsequently, the time taken to produce a Bitcoin block has risen to over 20 minutes; up from 10 minutes. Bitcoin price will also be reacting to the Feds taper talks. Investors will be keen on when the US central bank begins to tighten its stimulus program amid the ongoing inflation concerns.
A high-rate environment is likely to be bearish for riskier assets such as cryptocurrencies. Bitcoin price has begun the new month in the red. At the time of writing, the crypto was down by 2.
08% at 34,309.48. since hitting a two-week high at 36,639.92 on Tuesday, it has since declined by about 6%. On Wednesday, it dropped past the crucial level of 35,500, which has now become its resistance level. On a two-hour chart, it is trading slightly below the 25 and 50-day exponential moving averages.
In the near term, I expect Bitcoin price to find some resistance at 35,500. If the bulls manage to push the price past that level, the next resistance level will be the week’s high of 36,639.92. On the flip side, the lack of enough bullish momentum will place the support level at 34,000 or lower at 32,340.68.
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