Monday at the cryptocurrency market has shown weak trading. As a result of yesterday’s trading, Bitcoin has consolidated in the red zone with a change of -0.61%. As for the other popular cryptocurrencies included in the Top 5 of coinmarketcap, they followed the “elder brother”, and also showed negative dynamics of trading. The market capitalization still shows a lack of consumer interest and stays below $120 billion. But at the same time, the last week’s minimum of Bitcoin did not allow sellers to provoke further market drop. Therefore, a reliable barrier against a new wave of a decline can be seen from the prospect of technical analysis.
As for the news background, the UAE was in the spotlight of the market, the heads of leading ministries took the initiative to start issuing cryptocurrency. At the same time, it is claimed that this monetary unit will be used in banks for international payments. In the future, it is planned to expand the sphere of circulation not only for participants in the financial sector but for private use.
At the beginning of the week, market participants have pointed out the news from the United States. A bill of granting a legally equal status of cryptocurrency, along with fiat money was submitted in the state of Wyoming. Additionally, the law implies the classification of digital assets, including for storage. This brings SEC closer to the decision to legalize the ETF for cryptocurrency in perspective.
Technical analysis supports “bearish” sentiment due to the formed downward channel. The graph of the price of “digital gold” is testing support at the level of $ 3,575, thereby hinting that a breakdown of this level can accelerate sales to the next support point at $ 3,224. In the case of positive news background and growth of the market capitalization, a reversal to resistance point at the level of $3,740 should be considered.
BTCUSD (H4): reliable support at $ 3575