Chinese social-media service Weibo suspended some crypto-related accounts. Chinese authorities have recently cautioned on crypto trading and mining, which have put pressure on prices.
“We are currently witnessing stability in the cryptocurrency market. If we consider the past two weeks, prices of both BTC and ETH have been range bound. Consolidation is good as it allows the market to build up the momentum. Among the Altcoins, it might be an interesting week for Ripple and Dogecoin,” Edul Patel, CEO and Co-founder, Mudrex.
Meanwhile, over 12,000 participants descended on Miami to attend a two-day Bitcoin conference the city hosted. Miami is hoping to become the next cryptocurrency hub. In this conference, Nayib Bukele, President of Central American nation El Salvador said that he will send proposed legislation to the country’s congress that would make the cryptocurrency legal tender this week.
ZebPay Trade Desk’s Tech View
Bitcoin (BTC), the leading asset by market capitalisation, has been pretty range-bound over the past week. After witnessing a major correction a few weeks back, the asset seems to have gained some stability, trading in the range of $35,000 – $38,500. BTC currently trades at $36,700. Volumes have seen a slight dip over the last week, but that could be a result of the bearish stance in the marketplace.
However, the past couple of days have been positive for the asset as we have seen an upside in volumes, signaling that bearish sentiment is diminishing and bulls are buying in at higher levels. BTC hasn’t seen a major rally since the market reset, and this seems unlikely to happen very soon, and we anticipate a gradual recovery to continue.
Bitcoin, last week showed good signs of recovery, though the asset tested resistance multiple times but failed to break and sustain above it. Technically, on the 12-hour time frame, BTC is trading sideways in a ‘Symmetrical Triangle’ pattern (During this period of indecision, the highs and the lows seem to come together at the point of the triangle with virtually no significant volume). Hence, Breakouts on either side with good volumes will further decide the trend.
Support: $33,850 and $31,111
Resistance: $40,000 and $42,500
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)