Bitcoin was again in the red on Wednesday after Federal Reserve Chairman Jerome Powell called for tighter regulation of decentralized finance (defi), citing “structural issues”. The comments sent the token below $19,000 and consequently closer to an important support point. Ethereum also fell after yesterday’s rebound, falling below $1,300.
On Tuesday night, Powell said more regulation is needed in the crypto market, highlighting that the recent price drop is a “structural problem.”
In his, Powell described the current relationship between defi and traditional finance.” Ultimately it is not a stable equilibrium and we need to be very careful … How crypto activities are taken within regulatory boundaries.”
Following the remarks,BTC
As a result of today’s sell-off, bitcoin approached a key support point at $18,300. However, bulls have reacted, pushing prices away from this level.
The world’s second-largest cryptocurrency fell to an intraday low of $1267.87 on Wednesday, hitting a one-week low in the process.
Following a series of bearish sessions over the past two weeks,ETH/USD recently moved into consolidation territory.
As you can see from the chart, this is hovering between a support point at $1230 and a resistance level at $1300.
With this sideways move, the 10-day (red) moving average appears to have bottomed out and seems to have curbed the bearish momentum at higher levels.
At this rate, we should see further consolidation in the coming weeks and a possible move higher at some point in October.
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