Bearish Triangle Forming on BTC's Daily Chart; Crypto Executive Order Divides Community

Chart of the Day

On Wednesday, the broader crypto market experienced a surge after U.S. President Joe Biden signed the executive order on digital asset regulation. Unfortunately, this long-awaited rally after nearly a week of bad news and disappointing price actions was a short-lived one. In the early Asian trading hours on Thursday, the broader market once again found itself submerged in a sea of red after having most of the gains it made in the past 24 hours eaten away. BTC posted up a 5% loss in a mere matter of hours, plunging the number one cryptocurrency by market cap below the $40k psychological barrier. It is currently (as of the time of writing) trading above the $39k support zone, where a dip below said level could potentially trigger a further downside correction to the $37k level. While recent regulatory developments did seem to have a positive sway on BTC's price movements (albeit a momentary one), certain technical indicators do suggest that a bearish triangle is taking shape on BTC's daily chart, with the upper and lower bounds near the $45k and $36k levels respectively. Until a clean breakout from these triangles is observed, BTC's price movement in the interim is very much shrouded in uncertainty.