Buyers have attempted to push prices higher to new growth levels, but these attempts have not succeeded in the past few days. This is because the broader market sentiment which always favors the sellers always often pushes the price downward.
Bitcoin’s Rejection at $38,000 Shows the Buyer’s Weakened Accumulation
Despite the fears of a clampdown on Bitcoin in China, the press is notably at odds with the possibility of succeeding with banning the merging asset. Although the market may respond less to the first-ever Bitcoin ETP product billed to trade in UK’s Aquis Exchange next week, the market is relieving its resilience amidst the various negative trends it has faced thus far.
The Reserve Bank of India (RBI) has also come out to clarify its stance on cryptocurrencies, advising that banks can soften their strict adherence to an outdated nudging not to provide banking services to crypto exchanges and investors.
The attempts by market investors to capitalize on this news and regain control of the price were met with a vehement rejection at the $38,000 resistant zone as shown in the chart below.
Bitcoin is currently changing hands at $36314.0 according to data from CEX.IO price feed. However, with BTC in the oversold region, a new buying activity is bound to be ushered in, causing prices to rise. When this happens, BTC is likely to grow back to $50,000 with the new resistance – the point where further growth is no longer in the short term- set at $60,000.
Ethereum Looking to Rebound as it Approaches Key Support
Ethereum blockchain has received a tip from a former PBoC official Yao Qian as being suitable to power central bank digital currencies. This news, coupled with a reduction in the charges of Ether-powered transactions is the latest that can be seen as a major boost after weeks of negative trends in the market.
Ethereum is giving off a false impression of growth even though the sellers are largely taking control of the market. From its highest price recorded, the current price of $2579.71 following a 1.85% growth in the past 24 hours is an undervaluation. The buyers are looking to rewrite this trend.
ETH is approaching the support zone at $2,500. Against the historical trends, the bulls will look to use this point as a springboard to launch to break the resistance level at $2,800, and $3,000 respectively. Short term target for ETH is fixed at $3,000.
Yuriy Mazur, Head of Data Analysis Department at CEX.IO Broker