Bitcoin at three-month high: "Bulls are now in control of the price"
Bitcoin prolongs its bullish rally on which it embarked over the weekend and that led it to mark highs of more than three months, to price levels above $47,000, not seen since the beginning of January for the digital asset, on Monday. With this upward momentum, the queen of cryptocurrencies has erased its losses so far this year, accumulating six days in the positive and a 15% advance in the last week, according to data from CoinMarketCap. The rest of the market follows in the footsteps of the world's most traded digital token, with rises of 6% on average for the main digital currencies in the last 24 hours, which has brought the total capitalization up to $2,1 trillion.
Experts point out that the momentum in these assets will continue for the short term, on the back of the rally that is taking place in the rest of the financial markets. Moreover, fundamentals have been positive lately for digital currencies, amid good news from the regulatory front, as fears have faded, at least for now, that there will be a ban on crypto currencies in the US or the European Union (EU). Specifically, the European Parliament has completely removed clauses that pointed to a ban on the proof-of-work model - that Bitcoin is based on - from the Markets in Cryptoassets Regulation (MiCA), that is under development.
The bill will continue to be debated and negotiated between the Parliament, the Council and the Commission, with the EU bodies working together to reach a final consensus that will establish regulatory provisions for the entire region. Now, all eyes will be on the UK, as there are several reports that the UK will soon unveil plans to regulate the digital currencies market.
On the other hand, the rise in prices has also been helped by the fact that the war in Ukraine has demonstrated real use cases for tokens, the most recent being Russia's inclusion of Bitcoin as a means of payment in exchange for oil for countries considered "friendly", such as China or Turkey. Experts also indicate that purchases by Luna Foundation Guard (LFG) are boosting the price. In fact, last week it acquired $125 million in Bitcoins as part of a plan to accumulate a total of USDT $3 billion in Bitcoins as a reserve for the Terra token.
Experts now reveal that Bitcoin's latest moves open the door to it finally tackling the $50,000 level, which presents much greater resistance than the $45,500 - $46,000 level, that has already breached. "The bulls are now in control of the price," commented Naeem Aslam, analyst at AvaTrade, "but it is important to note that the rally will be stalled unless it manages to break above the next control zone," he added, and "once this resistance is broken, we are very likely to see serious upside momentum."
From the technical analysis point of view, "if we believe the symmetrical triangle broken to the upside now, we could expect a move towards the $62,000-$63,000 area (the width of the formation), leaving the door open, even to a move in search of the historical highs at $69,355 (November 10th, 2021)," stated Bolsamanía expert, José María Rodríguez. "And above that, it would be placed, once again, in absolute free ascent," he concluded.
ETHEREUM ALSO BREAKS THE SYMMETRICAL TRIANGLE
As for Ether, its technical aspect is similar, since this symmetrical triangle break has also occurred on the chart, which has given way to a new price recovery towards the $3,200 resistance, the last frontier before $3,500. However, the 200-day moving average prevents the price from rising further, suggesting that a small pullback is needed before the bull run can continue.
The two-month consolidation phase in the Ether price has ultimately worked in favor of the 'bulls', who have managed a bullish breakout of the symmetrical triangle downtrend line. However, the loss of momentum has given the price back. If sellers reverse the price of the coin from this EMA resistance, the minor pullback may find solid support at $3,000.