Bitcoin is trading above $46,000 and despite the decline, Ethereum was able to stay above $3,000. Now, a market strategist believes that investors are worried about the decline and that Bitcoin’s failure to recover immediately is seen as a sign of weakness. Is it really like that? Let’s get the opinions of a few experts…
What happened in Ethereum and Bitcoin?
Ever since BTC found support just above $29,000, it has battled to stay above $45,000 and even climbed as high as $52,700. Ethereum, on the other hand, managed to stay above the $3,000 level last month. But they’ve lost 10 percent and 17 percent, respectively, last week, and one market strategist believes that scares investors off.
Recently, Bitcoin has been in good and not so good news. El Salvador officially adopted the Bitcoin Law this week, making it legal tender. With the enactment of the law and BTC depreciating by 20 percent, the old “buy rumors and sell news” phenomenon was as pervasive as ever, but quickly picked up.
Mexico central bank governor rejects Bitcoin
elsewhere, Cryptocoin. com The central banks we quoted are taking new decisions. Declared the largest cryptocurrency (and all altcoins) by market capitalization as invalid in Mexico. The head of the Mexican central bank compared Bitcoin to barter trading and dismissed its value as a currency. His Swedish colleague compared it to trade stamps and said:
Private money often collapses sooner or later. And of course, you can get rich by trading Bitcoin, but this is comparable to trading stamps.
Bitcoin scares investors
One analyst believes that this wave of attacks and the corresponding price drops in Bitcoin are worrying investors. Wael Makarem, senior market strategist at trading broker Exness, said:
Investors are wary of current volatility in Bitcoin and Ethereum, especially as these benchmarks fail to dampen earlier losses, which are often considered a sign of weakness in the crypto market.
Makarem believes investors are worried about the recent correction
Wael Makarem, senior market strategist at Exness, said that as the market grows larger and attracts new entrants, watchdogs around the world are becoming more stringent on cryptocurrency policies. In the USA, a new budget draft that aims to increase reporting requirements; In Ukraine, the government recently banned cryptocurrency payments; and in Hong Kong, the securities regulator is working on stricter rules.
Makarem’s last statements were:
On the other hand, the series of headlines that EU regulators are getting closer to enforcing new regulations, new anti-money laundering rules and tax reporting requirements for cryptocurrencies are increasing the downward pressure. Investors fear strict rules and regulations that could limit the adoption or use of crypto.
Bitcoin and Ethereum technical analysis
It’s been a tough week for major cryptocurrencies and altcoin counterparts alike, after the top three cryptocurrencies Bitcoin (BTC), Ethereum (ETH) and Cardano (ADA) gave back some of their recent gains. Now, in the analysis below, price action is currently trading between the fundamental Fibonacci retracement levels of the June – September movement, while the MACD continues to threaten the zero line. We continue with Tammy Da Costa’s technical analysis of Bitcoin and Ethereum…
Bitcoin weekly chart
On the daily time frame, Bitcoin price is supported by the 200-day MA and short candles indicate indecision. For now, critical support and resistance remain stuck in the confluence zone between $43,478 and $52,939, the key Fibonacci levels of the aforementioned move.
Bitcoin daily chart
Meanwhile, Ethereum (ETH) has dropped below $4,000, but above both the 50- and 200-day MA on both the daily and weekly timeframes, it’s 61% of the 2021 move. Above the 8 retracement, $3,046 remained as critical support. If fiyadollarsar breaks below the 50-day MA or the MACD crosses the zero line from above, further downside pressure could allow sellers to take the price action back to the key psychological level of $3,200.
Ethereum weekly and daily chart
Contrary to how sellers can push the price to $3,200, if fiyadollarsar rises above the 23.6% retracement of the 2020-2021 move, the $4,000 resistance could be retested.