Bitcoin is now hovering around the $10,000 price point and many are nervous. With Facebook fighting for recognition of its own cryptocurrency, many are expecting the crypto-market to boom this year and next. However, technical data might suggest that prices could move much lower in the short term.

Bitcoin Rally Running Out of Steam?

The most recent BTC rally ran parallel with a great deal of good news. Many of the major tech players and institutions were talking about Bitcoin.

However, as regulators continue to grill Facebook executives on the Libra project, there is a chance this momentum will cease. In fact, even Facebook is admitting that there may be a chance that the Libra may not even launch at all. “There can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all,” the social media giant told the U.S. Securities and Exchange Commission.

The 50-day moving average, which many were using to justify the future bull run, has been broken with Bitcoin now dipping slightly being below. This could mean that Bitcoin’s rise from $4,000 to $14,000 could be over.

According to Miller Tabak & Co.’s equity strategist Matt Maley, “Bitcoin stands at a key technical juncture.” As we move into the 2020 election cycle, “greater regulatory scrutiny will become an even more prominent issue.”

Bears In Denial

It seems that the bears are being overly apocalyptic again, and using the 2020 election as a rationale for a bearish call sounds especially desperate. Cryptocurrencies have rarely been mentioned this election season thus far. Moreover, the political parties are too busy fighting over red meat issues to focus on cryptocurrencies. If anything, it seems just as likely that cryptocurrencies might thrive in this environment where the attention will be on politics, not on the market.

So, which is it? Is Bitcoin set for a major retrace? The 50-day moving average seems damning, but the response to Facebook’s hesitation on the Libra seems to be an overreaction. The social media giant has worked too hard to see its project completely disappear. Moreover, with Bitcoin’s next halving set to happen in mid-2020, it seems silly to be making overly-bearish calls.

Overall, bears seem to be in denial about what the future holds.

Do you believe the drop below the 50-day moving average is significant? Leave your thoughts in the comments down below. 

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.