The cryptocurrency market has had choppy sessions as of late, with both Bitcoin and Ethereum struggling to break out of their current price range. This has resulted in the market as a whole being choppy. Investors and traders are keeping a careful eye on the market to look for any indications that a potential breakout may occur during the course of the approaching weekend.
The largest cryptocurrency in the world, Bitcoin (BTC), was unable to continue its recent upward trend and lost some ground today. This may be due to the ongoing governmental attention that is being placed on the cryptocurrency industry.
The fact that regulators in the United States are becoming increasingly strict with regard to businesses that deal in cryptocurrencies is evidence of this.
One of the firms, Coinbase, was recently issued a warning by the SEC indicating that they may face legal action as a result of the notice.
Recent Developments in Cryptocurrency Industry and Regulatory Landscape
The values of Bitcoin and other cryptocurrencies have been increasing as a result of a variety of factors for some time now and have experienced a significant spike this year. BTC is currently on its way to reaching $30,000, a figure that has not been witnessed since the month of June. This year, the price of Bitcoin has increased by approximately 70 percent.
Yet, the reason for its huge upticks might be ascribed to people’s losing trust in traditional banks as a result of recent bank failures and doubts about the survival of traditional banks. This could be the case because of recent events.
As a result of this, a number of investors are beginning to view bitcoin as an asset that might serve as a safe haven. This suggests that the performance of bitcoin during times of market volatility is distinct from that of stocks and other assets.
On the other side, authorities in the United States are increasing their scrutiny of cryptocurrency exchanges like Coinbase in an effort to protect customers. This was proven to be true after the SEC issued a warning to Coinbase stating that they could be subject to legal action. Also, the SEC issued a warning to investors regarding the dangers of investing in cryptocurrencies.
In the interim, the SEC has also leveled charges of securities fraud against the designer of Tron as well as other celebrities.
In addition, a cofounder of Terraform Labs was detained in Montenegro for his role in the failed crypto project Luna. He was jailed for his involvement in the project.
In addition, investors are awaiting a ruling from the court in the dispute brought by the SEC against Ripple Labs about the classification of XRP as a security or not. As a result of this, it was believed that this was one of the primary factors that prevented any further gains in cryptocurrency.
As of just this moment, the current trade price of Bitcoin is sitting at $27,530, and its 24-hour trading volume is at $25.9 billion. Bitcoin’s price has dropped by almost 3% over the course of the past day and a half. It is interesting that Bitcoin is presently ranked number one on CoinMarketCap, with a live market cap of $532 billion as of this writing in the ranking.
According to the findings of a technical analysis, the BTC/USD pair is now exhibiting a bullish trend; however, it is possible that it could hit some resistance around the level of $28,950.
If Bitcoin is successful in pushing through the resistance level of $28,950, it may be able to propel its value upwards to $29,200 or perhaps $30,700.
On the other hand, if there is a bearish trend, the support levels located at $26,600 and $25,200 are anticipated to give strong support. This is because of the fact that these levels are located below the current price.
The Price of Ethereum
The current price of Ethereum in live trading is $1,751, and the 24-hour trading volume for the cryptocurrency is $1.5 billion. A loss of 4% in value has been incurred by Ethereum during the course of the past day. With a current market worth of $214 billion, Ethereum is currently ranked in the second position on CoinMarketCap.
At the moment, Ethereum is having trouble breaking through the $1,800 resistance level, and the cryptocurrency is trading in a range that is constantly close to the $1,700 support zone.
It is anticipated that the ETH/USD pair will encounter resistance at the $1,900 level in the event that it is able to successfully break through the $1,800 level.
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