Calls for Bitcoin (BTC) to rally above $40,000 were dashed as the top cryptocurrency hit a wall of resistance which sparked a sell-off in the early trading hours.
Data from Cointelegraph Markets and TradingView show the price of BTC fell as low as $34,368 before rebounding to its current price of $37,300.
Daily cryptocurrency market performance. Source: Coin360
It’s possible that the excitement surrounding the announcement of a $1.9 trillion stimulus bill from the incoming Biden administration quickly morphed into a buy the rumor, sell the news event as questions begin to emerge on the feasibility of parts of the bill.
BTC/USDT 4-hour chart. Source: TradingView
Bitcoin’s dip also comes after renewed criticism from global regulators as European Central Bank President Christine Lagarde recently stated that the top cryptocurrency is “totally reprehensible money laundering activity.” This was followed by an announcement on Jan. 15 that a British financial advisor has petitioned the U.K. Government and Parliament to ban cryptocurrency