Bitcoin experienced a modest uptick on Friday, partially rebounding from recent declines, even as traders exhibited caution towards the crypto market amidst regulatory uncertainties and soft US labor data, which pressured the dollar and fueled speculation of potential interest rate cuts.
Concerns over increased regulatory actions against cryptocurrencies weighed heavily on prices throughout the week, with reports indicating further moves by the US Securities and Exchange Commission (SEC) against major players in the crypto sphere. Additionally, the closure of a prominent privacy coin trading platform contributed to market unease.
As of 07:56 ET (11:56 GMT), Bitcoin was trading up 3.5% over the past 24 hours, reaching $63,243.4. A decline in the dollar overnight, spurred by weak labor data, provided some support to Bitcoin’s price.
Over the past seven days, Bitcoin remained relatively unchanged, maintaining a steady trading range established since its decline from record highs in early March. Last week, the cryptocurrency dipped as low as $57,000, entering a technical bear market from its peak in March.
While Bitcoin saw a recovery from its recent lows, further upward movement was hindered by ongoing concerns regarding heightened regulatory scrutiny. The closure of LocalMonero, a platform facilitating peer-to-peer trades of the Monero privacy coin, added to market jitters.
The SEC‘s postponement of the public listing of crypto wallet operator Exodus Movement on the New York Stock Exchange and potential regulatory action against trading app Robinhood Markets Inc intensified regulatory concerns. Additionally, the SEC delayed a decision on spot Ethereum exchange-traded funds (ETFs) to June, amid reports of an investigation into whether Ethereum constitutes a security. Similar regulatory actions have been taken against exchange Coinbase Global Inc and XRP issuer Ripple.
Despite these regulatory headwinds, broader cryptocurrency prices saw gains following Bitcoin’s rebound. Ethereum rose 1.9%, XRP climbed 0.3%, and Solana notably surged over 8% on the day.
While weak jobless claims data spurred optimism for potential Federal Reserve interest rate cuts, such actions are not expected until September, which could continue to exert pressure on crypto markets in the short term.
Dogecoin Poised for Potential Bullish Momentum with Golden Cross Pattern
Dogecoin (DOGE), the leading meme cryptocurrency by market value, appears to be on track to replicate the bullish “golden cross” technical pattern that preceded its surge in early 2021.
With a market capitalization of approximately $22 billion, DOGE has demonstrated remarkable performance this year, surpassing Bitcoin’s gains.
CoinDesk highlighted that DOGE’s 50-week simple moving average (SMA) is on the verge of crossing above the 200-week SMA in the near future, signaling a golden cross. This pattern suggests that short-term price momentum may exceed long-term momentum, potentially initiating a sustained bullish trend.
In March, DOGE surpassed its 200-week SMA after emerging from a prolonged consolidation period, establishing support above this critical level. The upcoming golden cross would mark the first occurrence in over three years, with the previous instance in January 2021 preceding a four-month rally that propelled prices over 8,000% to a record high of 76 cents on Binance.
However, it’s important to note that historical trends do not guarantee future performance, and moving average crossovers, while significant, may sometimes mislead traders, particularly in traditional markets.
