The agency highlighted the spread of cryptocurrency use in the world’s emerging markets since the coronavirus pandemic began in early 2020. And in turn, it recorded that the trading volumes of cryptos distanced themselves from the use of national currencies since the sanctions that the West imposed on Russia came into effect.
In this context, Bitcoin grows slightly 0.2% to $41,434. For its part, Ethereum falls 0.2% to $3,082.46. The rest of the altcoins are trading with the majority of increases, although Ripple’s fall stands out with 2.3%. Terra, meanwhile, continues with the bullish race and rises 2.3%. Cardano and Solana rise, respectively, 0.5% and 0.3%.
Despite this harsh message that regulatory waves could spark, cryptocurrencies ignore it and react positively. This Wednesday, Bitcoin trades in an uptrend up to price levels above $41,000 and starts the recovery process after touching $38,550. Traders are trying to stay afloat above the $40,000 range, a key price for the bulls. However, analysts anticipate that the leading cryptocurrency remains in a range between $38,000 and $48,000.
Last week, the price of the largest cryptocurrency by market capitalization fell and Bitcoin closed with a bearish candle on its weekly chart. “Price is looking for support higher and lower. Most altcoins followed similar price movements”commented Alejandro Zala, country manager of Bitpanda in Spain consulted by Bolsamanía.
Now, the shorter-term support is back at 40,000, where “traders know that for bulls to succeed, bitcoin has to stay above this critical price level,” said Naeem Aslam, head of AvaTrade analytics. The first resistance is at US$42,000, a level to overcome to reach the most important area of US$45,000.
The expert calls for caution, however, since on the fundamentals side, New IMF warning about countries using cryptocurrencies to avoid sanctions is in the spotlight. Cryptocurrencies are being used to sell oil and gas to some extent by countries like Iran and Russia. There is also concern that these countries are using the oil and gas resources to fuel cryptocurrency mining, which is another source of income, and to circumvent all sanctions.
“The IMF warning will certainly bring more regulatory attention to crypto companies, crypto exchanges and crypto miningAslam added.
In general, the market ignores these risks and leaves rallies for all altcoins. Ethereum follows bitcoin in its behavior and is also looking to gain momentum to break above the $3,200 resistance, while holding above the $3,000 support.
Source: Ambito
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