A number of factors are encouraging investors, who are trying to put the meltdown in January behind them, when, according to BofA, the market value of digital assets fell 20% to $1.8 trillion. In the first place, some regulatory threats that hung over these assets have dissipated after the tax regulation presented by India and Russia has decided to regulate operations with “crypto” assets, instead of prohibiting them.
On the other hand, several events that occurred in the corporate world send good feelings to investors who are much more optimistic. Recent news that KPMG Canada will add Bitcoin to its treasury, Apple announcing functionality for its iPhones that allows payments with Bitcoin and electronic currencies, and BlackRock considering entering the crypto market are supporting earnings.
This latest development echoed by ‘CoinDesk’ “is the biggest positive news for Bitcoin adoption,” said Naeem Aslam, head of analysis at AvaTrade. “There is no doubt that for some bitcoin is a great asset to speculate on, and trading this token is the perfect vehicle for it. For others it is the future, and on this front, we have known that bitcoin is becoming in a currency that is legal tender in Russia”, observed the expert. “These are gigantic developments and looking at the price action it looks like the rally is about to start which could push the cryptocurrency towards the $100,000 price level.”
As for the rest of the market, optimism prevails this Thursday in all tokens, while the total capitalization is still struggling to consolidate the 2 trillion. The rises for Ethereum (ETH) stand out, which extended its new highs. The second most traded cryptocurrency on the market is now targeting resistances at $3,400 and $3,600, according to technical analysis, after rallying nearly 50% from January lows.
Optimism caught on among investors after the unit of the Ethereum network, Ether, crossed $3,000. Crypto analyst Benjamin Cowen, quoted by ‘Coingape’, has predicted that ETH is gearing up for a major breakout after a long-term consolidation. According to him, the zone between US$2,000 and US$4,000 is a great readjustment zone for a track of higher prices in the medium term.
Ethereum price is showing signs of continuation to the upside on the daily chart, where it overcame any challenges on its way to reaching the $3,200 level. As the price of Ethereum has successfully moved above the 50-day SMA and the bearish sloping line, investors are targeting $3,600.
The US inflation data, which will be known today, can once again tip the balance in favor of cryptocurrencies.
Source: Ambito
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