Crypto bulls battle for management whereas the ECB retains an eye fixed on Bitcoin’s international laws
- The ECB is pushing for a digital euro in five years, but must first regulate the “funny business” of Bitcoin.
- BTC / USD declined at $ 40,000 but took refuge at $ 38,000 to protect the uptrend.
- Ethereum faces an uphill battle for profits above $ 1,200 and towards $ 1,300.
- Ripple is stuck in the consolidation range between $ 0.29 and $ 0.3.
A select number of coins in the cryptocurrency market have seen double digit gains over the past 24 hours. Polkadot (DOT) rose to new all-time highs above $ 15 and hit 25% over the same period. Similarly, Chainlink (LINK) is trading at $ 18.4 after a 15% rebound. As previously reported, Cosmos (ATOM) intends to move to $ 10 but is currently holding above $ 8.
Bitcoin picked up $ 40,000 again during Friday’s Asia session but was unable to sustain the uptrend. A correction came into play and sent Bitcoin back to support with $ 38,000.
On the flip side, Ethereum has rebounded above $ 1,200 but doesn’t seem to have the momentum to complete the leg at $ 1,300. Meanwhile, XRP is still capped at under $ 0.3, with $ 0.29 providing instant support.
The ECB wants to regulate the “funny business” of Bitcoin globally.
The President of the European Central Bank, Christine Lagarde, said in an interview at a conference hosted by Reuters that the largest cryptocurrency had a “fun business” that had to be stopped by a global level of regulation. Lagarde also said a digital euro should see the light of day in almost five years.
Bitcoin deals with rejection at $ 40,000
The pioneering cryptocurrency is struggling to stay afloat at $ 38,000. It did so after BTC suffered a $ 40,000 rejection earlier in the day. The 50 Simple Moving Average is slightly below $ 38,000 and offers support.
A hold above the moving average could help the bulls avoid declines as Bitcoin focuses back on the uptrend to $ 40,000. However, the Relative Strength Index shows that bears have more influence, at least for now.
BTC / USD 4-hour chart
Specifically, Bitcoin can resume the uptrend if prices close above 50 SMA for the day, if not $ 38,000. Some lags should be expected at $ 40,000, but Bitcoin would gain the right momentum to hit a new record high if broken.
Ethereum is struggling to keep the uptrend above $ 1,200
The smart contract giant has torn down some key areas of resistance. $ 1,100 and $ 1,200. However, the immediate uptrend is capped at $ 1,240. The ether must hold solidly above the 50 SMA to sustain the uptrend. Also, a price movement past $ 1,240 can help confirm gains at $ 1,300.
The Moving Average Convergence Divergence or the MACD show that the trend is tilting slightly towards the bullish side. However, losses occur when the MACD (blue line) falls below the signal (orange line).
ETH / USD 4-hour chart
If the price declines at 50 SMA, we can expect Ether to seek support at 100 SMA. The 100 SMA can absorb some of the selling pressure and could be the barrier preventing the price from retesting $ 1,200.
Note that Ethereum has been bouncing off support for rising trendlines since the beginning of the week. Hence, it is likely that losses will be mitigated at this level and a strong rebound for ETH / USD is possible.
Ripple is firmly in the consolidation
XRP is central in a narrow range of $ 0.29 to $ 0.3. Countless attempts have been made to eliminate the immediate resistance to no avail. On the flip side, bulls have not ensured a significant decline in the picture by vigorously defending the near-term support at $ 0.29.
Other key levels to watch out for during this consolidation period are the 50 SMA (resistance just above $ 0.3) and the 100 SMA (critical support around $ 0.27). Trading above the former may confirm an uptrend to the 200 SMA ($ 0.35).
XRP / USD 4 hour chart
On the flip side, massive price cuts could engulf Ripple if 100 SMA support is broken. The bearish leg is likely to stretch to $ 0.25 before the price rebounds to $ 0.3 for another shot.