After recovering 8.4% from May 18 low at 7,927, the Bitcoin’s recovery found resistance at the dynamic uptrend line coming from April 9 and May 12. BTC/USD is now trading at 8,500, opening the week 0.20% negative.
While experts, including Fundstrat Global Founder Tom Lee, anticipated a cryptocurrencies’ rally last week amid the Consensus conference in New York, the fact is that Bitcoin dropped about 10% between Monday and Friday.
Last year, Bitcoin jumped around 70% during the Consensus conference; however, in 2018, the King crypto didn’t even rally, but it closed the week with losses. No matter the conference tripled attendees, but cryptos didn’t rally.
According to Tom Lee, Consensus’ rally did not happen because the current narrative in the crypto world that is dominated by “institutional investors are coming,” but the other part of the equation like a regulatory framework doesn’t have consensus from SEC or other entities. “What is a security, what is not, etc.”
On the other hand, Consensus provided the market with big announcements like that Nomura will be the “first ever to act as a crypto-custodian bank as part of a consortium with Ledger and global Advisors.”
In this framework, Fundstrat said that their conviction on cryptocurrencies strengthened during the conference. Lee keeps his price target for bitcoin as 25,000 for the end of the year.
“Bitcoin doesn’t have to go up every day to move from $8,000 to $25,000. The ten best days account for all the return of bitcoin in a year. If you didn’t own bitcoin for ten days each year, you lost 25 percent each year,” affirmed Lee.
Cryptocurrency is a property – Russian Justice Minister
Russia’s Justice Minister Alexander Konovalov said to reporters that cryptocurrency legally falls under the category of “other property.” Konovalov also stated that “digital coins should not be considered electronic money, at least on this stage.”
“If digital money is not property, its theft would not be considered criminal offense because there would be no object of the crime.” Konovalov considers that Russia should have a rigid crypto regulation. In any case, the Duma will answer the question soon.
Bitcoin’s Recovery subjugated by a short-term dynamic resistance
Bitcoin’s recovery is fragile. It is trading slightly negative on Monday as the BTC/USD is consolidating levels after Sunday’s rally.
The pair recovered 8.4% from May 18 low at 7,927; however, BTC/USD found selling interest at the 8,600 area, where a dynamic line coming from April 9 and May 12 shows up.
The pair should keep trading above the 8,400 area before extending gains. The 8,600 is the next natural resistance; however, the real battle will be at the 8,880 area.
If the unit returns below the 8,000 level, it will face support at 7,830. The next buying areas are at 7,500 and 7,300.
ETH/USD ‘pegged’ to 710.00
It seems the 710.00 area is a magnet for the Ethereum as the pair has been flirting with that price for almost a month. After there positive days in a row, the ETH/USD is opening the week with small losses as the pair 0.25% down at 712.00.
Ethereum is in the middle of a moving averages sandwich. The 20-day moving average is also acting as a resistance; while the 200-day MA is supporting the pair, at least in the short term.
Bulls have to push the pair above the 20-day ma level at 726.00 first, and then the 747.00 area should be broken before confirming the recovery. Above, 785.00 and 830.00 are the resistances.
To the downside, the 200-day MA at 690.00 should give up before giving the control to the sellers. Next supports are at 640, May 12 low, the 600.00, and the 557.00 critical area.