At the start of the new trading day bitcoin There were crises on the front. US President Joe Biden has proposed a new tax regime to control mining activities. This affected the markets and ignited a new wave of decline. The impact does not seem to have subsided at this time as BTC price continues to drop and could approach key support very soon.
BTC price has dropped more than 8% since the early trading hours. A good recovery did not follow and it was limited to very small levels. Bulls are constantly failing to create the necessary pressure. Therefore, the downward movement may continue for a long time.
What Bottoms Can Be Tested By BTC Price Amid The Current Downtrend?
Bitcoin’s price is melting down below immediate resistance levels as the bears continue to build up enough selling pressure. After the first break, in the first few days of March crypto- The asset had to slide below the February low of $21,500 with expanding volumes. At this pace, every high will be a liquidation opportunity for aggressive traders aiming for a low of $19,700 or lower.
The recent price action has led the coin towards the lower Bollinger Bands. This indicates strong selling momentum. Moreover, yesterday’s bar showed a bearish cross above $21,000. In the coming days, traders are expected to witness more losses in the short-term, while the long-term model is yet to be confirmed.