Bitcoin snaps the uptrend momentum in fall below $50,000, what is the chart saying?
Bitcoin falls below $50,000 for the first time since early March
Biden's capital gains tax story is the key headline doing the rounds but in the crypto space, there's a lot of rumours floating about Yellen proposing a 80% capital gains tax on cryptocurrencies in particular.
On the latter, it's quite hard to believe that Yellen would be taking the lead in terms of proposing such policies, so believe what you want with the rumours.
There are no firm reports (besides Twitter talk) on that, for what it's worth.
In any case, Bitcoin is facing pressure under $50,000 currently as price breaks towards its 100-day moving average (red line) for the first time since October last year.
Of note, the drop also snaps the uptrend momentum in which buyers have kept since the start of the year - as seen with the series of higher lows, higher highs.
As such, that is a major blow dealt to buyers as price has stumbled by over 23% since peaking on 14 April. While Bitcoin is susceptible to such volatility, perhaps the technical picture needs to be taken into account as well this time around.
A break back below $50,000 will dent confidence quite drastically and any firm break below $50,000 will also leave little room for support close to $43,000 to $44,800.