Round-up of most interesting stories from the crypto world, as well as, its technical analysis.
During the weekend, Bitcoin kept moving sideways and also attempted to clear the crucial resistance level at $42,500. However, it failed and started a downside correction after forming a high near the $42,400 zone. The price has now declined below the $41,500 and $41,200 support levels and the 100-hour SMA. Moreover, the cryptocurrency formed a key bullish trend line on the chart with support at $41,550.
Currently, BTC/USD is testing the 50% Fib retracement level of the upward move, wherein the first resistance is at $41,000 level.
On the upside, Bitcoin is facing resistance at $41,200, which if it is able to break successfully, can push its price towards the $42,000 level. On the downside, the first support is at $40,500 zone, the second at $40,000, and if both get broken, could start a sharp decline in the price towards the $38,500 level.
Ethereum – Market and Technical Analysis
Over $1.61 billion worth of ETH tokens is out of the market, as per the data from Glassnode. The exodus has reduced the net Ethereum balance to 21.72 million ETH on crypto exchanges; the lowest levels since 2018.
This move is believed to be in response to the upcoming transition of Ethereum from PoW to PoS with ETH2.0, as holders expect a price rally. The merge is inching closer as the network launches its last multi-client testnet Kiln and the deposit contract has surpassed more than 10 million ETH tokens.
The technical chart of Ethereum suggests that the cryptocurrency kept moving sideways during the weekend and failed to clear the resistance at $3,000 as sellers continue to defend this level. RSI indicator has also surpassed its previous swing high resistance and triggered an uptrend to the 64.71 mark, while the 50 DMA line suggests bulls will continue to defend the $2750 mark.
Currently, the second-biggest virtual asset by market cap has two resistance levels – at $3,000 and then at $3400. However, if it is to start a downtrend, the immediate support level is at $2850 and then at $2741.
Australian lawmaker, Andrew Bragg, has proposed the Digital Services Act (DSA) legislative package in an attempt to lay the groundwork for a new cryptocurrency ecosystem for the country. The legislative proposal calls for crypto custody, market licensing, DAOs (Decentralized Autonomous Organizations), taxes, and debanking.
The US Treasury has released a report, noting that fiat currencies are still a major choice for financial crimes than cryptocurrencies. However, the report also touches upon the increased utilization of cryptocurrencies as payments for online drugs, money laundering, and avoiding sanctions.
A US Senator, Elizabeth Warren, introduced the “Digital Asset Sanctions Compliance Enhancement Act” on March 17, which if made into law, would require more action from crypto exchanges on Russian users. However, the bill has drawn constructive criticism from industry players due to its complex language and sweeping definitions. Here is a tweet from Coinbase’s Head of US Policy:
In an ongoing dispute with Ontario’s financial regulators, Binance has reportedly shut down the state’s users from its platform. Following the clampdown, the exchange has committed not to open accounts for Ontario users, as well as, halt trading and wave/pay fee for some of the users.