“The rebound in risk appetite has buoyed the pair, with attention on the next resistance level, $45,500-$46,000,” said Craig Erlam, an analyst at Oanda. For this expert, the following movements will depend entirely on the desire to take more risk in the market.
However, for Naeem Aslam, head of analysis at Avatrade, the pullback from a high above $43,000 indicates that “the bulls are not in good shape”. He states this expert that the bulls “need a lot more firepower for the price to rise from here on out”. “The issue is that the traders are not all aligned,” he comments, arguing that the lack of catalysts in the market is making the price hesitant.
“In Europe and the US we have more regulatory control over the cryptocurrency situation, which is positive for long-term sustainability. However, in Asia, there is no favorable stance among regulators,” he explains. , “This is why for the past few months, the rallies we see for bitcoin during the European or US sessions are used as an opportunity to short during the Asian sessions.”
“Also, the wallet activity shows that the whales remain on the sidelines and the rallies are very much driven by retail customers,” the expert says.
“The underlying is moving within what is a symmetrical triangle (lower highs and higher lows). And until the price breaks one way or the other we will not have confirmation about what may be the next big trend movement” , says José María Rodríguez, an analyst at Bolsamanía. “As a short-term support zone we have the base of the triangle (35,000) and the upper part as resistance (US$45,300). But until the price does not break clearly we will have nothing at all. Everything will remain the same and we do not want to find the ‘excuse’ for the movement of the day.”
“What seems clear is that only above $46,000 (February highs) will the buy signals in bitcoin be activated again. And in the meantime there is nothing to do here,” he proclaims.
A decision that can change the spirits
From the fundamental point of view, investors are waiting for the decision of the US Securities and Exchange Commission (SEC) to approve its first spot bitcoin ETF. Yesterday, the agency said it would extend its window to make a decision on WisdomTree’s Bitcoin investment vehicle. Having the Bitcoin Spot ETF approved will really be a game changer for bitcoin, and the fact that the SEC did not overturn the decision this time has increased the odds that the news will be more positive.
In the last few hours, it has also been noted that the balances of bitcoins and ethereums on cryptocurrency trading platforms have fallen to new lows, according to data from the BeInCrypto analysis platform. The exodus of bitcoins from crypto brokers is often seen as a bullish indicator of the market as it usually means that the tokens are being sent to cold storage locations, therefore it is seen as a sign of conviction by holders.
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Source: Ambito
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