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Bitcoin and Ethereum: Instability

Bitcoin and Ethereum: Instability

Early this morning, the price of Bitcoin managed to climb above $20,000.
During the Asian session, the price of Ethereum managed to climb up to $1175 and encountered resistance there.
The BoE’s Financial Policy Committee has called for improved regulation of the crypto-asset market to mitigate potential risks.

Bitcoin chart analysis

Early this morning, the price of Bitcoin managed to climb above $20,000: we stayed there for a couple of hours, followed by a pullback to $19,450. This pullback could bring the price down to $19000 and another test of this support zone. For a bearish option, we need a break below the lower zone. Potential lower targets are $18,500 and $18,000. For a bullish option, we need a new positive consolidation and a return above the $20000 level. After that, with the continuation of the bullish consolidation, we could continue it to the next resistance zone. Our first resistance zone is at the $21,000 level; if we overcome it, the next resistance is at the $22,000 price.

Ethereum chart analysis

During the Asian session, the price of Ethereum managed to climb up to $1175 and encountered resistance there. Since then, the price has been retreating to the current $1100 level. We are now looking for support at this level for the continuation of the July bullish trend. We need another positive consolidation to keep us above the $1100 price. After that, we could continue towards the $1200 resistance zone. We must continue the negative consolidation and a break below the current support zone for a bearish option. The moving averages would then shift to the bearish side and increase the pressure on the price to go even lower. A potential lower target is the $1000 support zone.

Market overview

The BoE’s Financial Policy Committee has called for improved regulation of the crypto-asset market to mitigate potential risks.

The committee focuses on the central bank’s role in maintaining financial stability. Noting the recent turmoil in the market, the committee said that crypto-assets do not yet pose a threat to the broader financial system. According to meeting summaries released Tuesday, they could be more integrated into mainstream finance in the future.

The collapse of Terra’s stable coin in May and crypto lenders, including Celsius and Babel Finance, freezing withdrawals this month have focused regulators’ attention on the digital asset industry. That’s more than $2 trillion in market capitalization that was wiped out over several months.

The Treasury has already announced that the Bank of England is considering introducing stable systemic flows into its special administration regime. The central bank would regulate stable coins that are connected to the broader financial system.

The post Bitcoin and Ethereum: Instability appeared first on FinanceBrokerage.

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