Bitcoin Price Drops Below $38,000, “Long-Term Bottom” Possible at $29,000

The leading cryptocurrency lost its rebound as it failed to maintain the $40,000 mark and a new bill is causing concern among crypto investors in the US.

Over the past seven days Bitcoin price rallied from a low of $36,500 to $42,620 but then struggled before the $43,000 resistance, losing momentum, sending the digital currency back below $40,000 and swinging in a narrow two-day range for two days. via.

Bitcoin's trading volume in the past few days has remained quite low, hovering around $27 billion.

Currently, crypto investors in the US are having a headache because of a new bill.

Specifically, according to Forbes, the US has just proposed a bill to tax profits from investing in Bitcoin and cryptocurrencies.

The purpose of the tax is to invest in US infrastructure, the bill also requires regulators to provide crypto investor information to the government.

This bill is causing strong protests in the US. The American Blockchain Association asserted that “this bill poses a serious threat to the crypto industry.”

Attorney Jake Chervinsky said: “Many crypto investors in the US are very confused. If the bill is passed, this will do more harm than good.”

Be cautious before BTC price swings lower

Data from Cointelegraph Markets Pro and TradingView shows the BTC/USD pair hitting $37.x before rebounding slightly.

Currently, the target support area lies at $36,000, where it is a key point to prevent what trader Pentoshi calls a “worst case scenario”.

“Seismic deviation sinks people who don't plan for them,” he warned on Twitter with a chart showing key price levels.

Be cautious to invest. Good luck!

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