Bitcoin Blindsided By Ban Warning From Dalio, BTC Near Key Support

That helped to elicit a really clean push down towards the 50k level, which hasn’t yet come into play. But, if/when it does, that’ll be an important test as BTC/USD tests a very key psychological level.

BTC/USD FOUR-HOUR PRICE CHART

BTCUSD Four Hour Price Chart

Chart prepared by James StanleyBitcoin on Tradingview

BITCOIN MOVING FORWARD – BULLS FACE A BIG TEST AT CONFLUENT SUPPORT

The elephant in the room is what and how the US government may look to regulate cryptocurrencies in the future. Recently Treasury Secretary Janet Yellen offered some non-supportive comments on the matter, alluding to the potential for illicit use or the inability to control the cryptocurrency market.

And in pertinence to current matters – it was a set of comments from Ray Dalio that appeared to get the market’s attention when he said that he thought the government would move to ban cryptocurrencies, similar to how they’d done with Gold in the past.

And given the incredibly unique context of the situation, it’s really impossible to say that Mr. Dalio is wrong or incorrect; it may well be on the horizon as global governments that have become dependent on printing capital look to protect their position in the market while tamping down on a possible competitor.

But to mesh this with the technical perspective – there’s a big zone of confluent support sitting just underneath current price action that may offer a ‘tell.’ There are Fibonacci levels at 49,182 and 50,187. In between those two prices is the 50k psychological level, and in a market like Bitcoin, psychological levels may take on even more importance as there are a plethora of retail traders that may act around them.

Frankly, Bitcoin at 49,999.99 seems significantly cheaper than just 2 cents below 50,000.01; and this is why psychological levels can often carry impact in markets, particularly those with heavy retail interest.

BTC/USD EIGHT HOUR PRICE CHART

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