Daily Market Recap – BTCUSD Breaks through bottom of triangle pattern

The price of bitcoin slipped again on Tuesday. The reason for the move was unclear, but it may be related to concerns about the security of the cryptocurrency after U.S. officials managed to recover most of the ransom money paid to the hackers targeting Colonial Pipeline. U.S. law enforcement officials said they seized $2.3 million in bitcoin paid to DarkSide, the cybercriminal gang behind a crippling cyberattack on Colonial Pipeline.

According to court documents, investigators were able to access the password to one of the hackers' bitcoin wallets. The money was recovered by a recently launched task force in Washington, D.C., created as part of the government's response to the rise in cyberattacks.

Bitcoin's decline has dragged all other cryptocurrencies back into the spotlight, bringing the issue of security and links to cybercrime back to the forefront.

There are a number of issues weighing on cryptocurrencies, including fears of a regulatory crackdown and recent tweets from Tesla CEO Elon Musk.

Last month, Chinese authorities called for a crackdown on cryptocurrency mining and trading. Once a major player in the market, China has since taken steps to stamp out speculative investments in cryptocurrencies, banning a fundraising method known as initial coin offerings and shutting down local exchanges. Trump, who is returning to the political scene, has also blasted cryptocurrencies, which he says penalize the dollar.

Meanwhile, Elon Musk has gone from supporting bitcoin to seemingly disliking it in a matter of months. Musk's electric car company stopped accepting bitcoin as a payment method last month due to concerns about its environmental impact, leading to a wave of selloffs in the crypto market.

From a technical perspective, BTCUSD broke out of its upward trending triangle yesterday and has shifted the focus to the lower bound in line with the downtrend which has been in effect since the break of USD 42,000. The probability of a return to the psychological level that once served as support at 30,000 USD is high. The real technical objective will be how prices react following a test of the 30,000 USD mark, with the 25,000 USD in extension likely to be the true bearish target.

(Chart Source: Tradingview 08.06.2021)

To invalidate this negative scenario, Bitcoin will need to recapture the high oblique of the triangle and return above 42,000 USD to reverse the trend.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.