By Samuel Indyk
Investing.com – Bitcoin failed to hold a break above $36,000 on Wednesday in a relatively quiet day in terms of news for the world’s largest cryptocurrency.
After trading above $36,000 for the first time since 20th June on Tuesday, the coin fell back below $35,000 as traders await the next catalyst for a move.
Technicals
Traders may be focusing on a clean break to the upside of the 21DMA at $35,650 as a positive signal, before a test of the 50DMA which is around $37,800. A break above that level and the psychological $40,000 handle will come into play, before the 200DMA, which resides around $43,800.
On the downside, $34,000 continues to act as near term support and if that gives way, the $30,000 level will come into focus again, after Bitcoin tested that level on Saturday.
The stabilisation in Bitcoin comes following a raft of negative news over the last two weeks which sent Bitcoin lower, beginning with the crackdown on mining in China and Elon Musk saying Tesla (NASDAQ:TSLA) would stop accepting Bitcoin over its energy usage.
One thing markets will be aware of in the coming weeks is the expiry of the lock-up period in the Grayscale Bitcoin Trust (OTC:BCHG), which JPMorgan (NYSE:JPM) analysts last week said could be a downside risk.
The analysts at JPMorgan see some investors selling some of their shares, leading to downwards pressure on GBTC and on Bitcoin more generally.
However, for now, Bitcoin appears stuck in the $30,000-$40,000 range, which it has traded in for the last few weeks, apart from a few hours either side.
At 13:13BST, Bitcoin was trading around $34,980, down around 1.7% in the last 24 hours.