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Bitcoin and Ethereum continue price recovery

Bitcoin chart analysis

Bitcoin continues to recover and consolidate above $ 42,000. It is currently at $ 42,900, and with the support of moving averages, we can expect a continuation to the previous resistance zone at $ 45,000. A break above $ 45,000 would open up space for us up to $ 52,000. Medium-targets are first at $ 48,000 and then $ 50,000 psychological level. For the bearish option, we need negative consolidation and a price withdrawal of to $ 40,000 level. In that zone, the MA50 and MA200 moving averages provide additional support. A break below would bring us down to the March support zone of about $ 38,000. And if we continue, we will go down to the February support zone of 34000-35000 dollars.

ETHUSD chart analysis

For the last ten days, we have been constantly in the bullish trend of March 14, after the price found support at $ 2,500. We are now testing the $ 3,000 level, and if this bullish momentum continues, then we can expect a price at the $ 3,200 level. Ethereum also has support in moving averages, and it is very important that the price made a break above the MA200 moving average. If the price stays above $ 3,200, our next target is the January lower high at $ 3,400. For the bearish option, we need a new negative consolidation and a price withdrawal towards $ 2,800 support. Additional support at that level is in the MA50 and MA200 moving averages. Break below this support zone opens up space for us to the March support zone at $ 2,500.

Market overview

U.S. Federal Reserve Chairman Jerome Powell has expressed concern about the cryptocurrency sector. The official stated that private cryptocurrencies and stable coins pose a risk to the financial sector’s stability.

Powell said, Our existing regulatory frameworks are not built with the digital world in mind. Stablecoins, central bank digital currencies and digital finance, in general, will require changes to existing laws and regulations or even completely new rules and frameworks.

Powell added that there are concerns about the effects of some digital asset products on financial stability. He noted that no historical data shows how some of these products will react in the event of a market recession.

The official also spoke about the use of cryptocurrencies in money laundering and other illegal activities. According to him, governments needed to work together to ensure that digital assets are strictly monitored. Moreover, governments had to support financial products that bring value to investors.

This is not the first time Powell has criticized the cryptospace. In January, he noted that the financial risks of using stable coins are “a very high priority”. Stablecoins are private cryptocurrencies whose value is tied to other stable assets such as fiat currency. Stablecoins usually have stable values ​​compared to other cryptocurrencies.

Last year, the Federal Reserve noted that it will take time before launching the digital dollar. The institution pointed out that the United States will not compete with countries like China, which are already a step forward in launching their CBDCs. Powell added that the United States should reduce the possibility of making any mistakes when launching the CBDC.

US president Joe Biden recently signed an executive decree on digital currencies. The order instructed federal agencies to work together to regulate the cryptocurrency market.




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