How long will Bitcoin´s consolidation last? No signs it will come to an end anytime soon

The cryptocurrency market remains in the same state of consolidation it´s been in since Bitcoin failed to overcome the imposing resistance zone around $45,500 - $46,000 at the beginning of March. Most altcoins are following in the footsteps of the queen of assets, which is why range movement for the tokens is also being imposed. Also, experts see no clues that this behavior will change in the short term.

Stock markets are doing better, in general, since last week, when the rebound began due to the violent shocks received in the markets because of the Ukraine war. The good tone continues this week as the price of oil falls, which implies less inflation and speaks volumes about the mood of investors' hopes for an early resolution of the conflict with Russia. In contrast, Bitcoin remains encapsulated in a price range that has $37,000 as clear support, while on the resistance side $40,000 and $42,000 are limiting any upside. The price actually assaulted the first of these control zones on Wednesday and is up 5% during the last 24 hours.

As for Ethereum, it follows an almost identical pattern, although in its case the support is at $2,500, while the resistances reside at $2,800 and $3,000. In both cases, the recent lows of late February, at $34,500 for Bitcoin and $2,300 for Ether, are not lost in sight. All other tokens are leaving rises, but volatility is in short supply, while total capitalization also remains anchored at $1.75 trillion.

"There is little sign that the consolidation we are seeing is coming to an end," stated Craig Erlam, analyst at Oanda, pointing out that it doesn´t move in line with the rest of the risk assets, such as equity markets. The recent highs pave the way for further buying, at least up to $42,000, but caution seems to prevail among market traders, who have not reacted happily to the passage of the Markets in Cryptoassets Act (MiCA).

The European Parliament's Economic and Monetary Affairs Committee (ECON) voted on Monday on a draft of this bill, that included a last-minute addition involving a ban on Proof of Work (PoW) mining, which affects Bitcoin. Fortunately, the committee voted against the ban, as an alternative proposal received support instead. Stephen Berger, who drafted the amendment to the ban, stated that by accepting his proposal, members of the EU parliament paved the way for the future regulation of cryptocurrencies, and that´s a major relief for the sector.

Last week the market showed increased enthusiasm for regulatory developments in the US, where several government agencies are working on a comprehensive framework for these assets, following a "benign" - in the words of several analysts - executive order from President Joe Biden. "These regulatory developments show the support cryptos are receiving around the world, as the industry is proving to be an unstoppable force that will have great adoption in the long term," commented Marcus Sotiriou, analyst at GlobalBlock.