The cryptocurrency market has spent a better part of the last 24 hours consolidating around the significant psychological level after staging a relief rally in the past week.
However, sitting above the psychological level of US $40,000 and the 100-day moving average have so far capped Bitcoin’s upside momentum, which limits significant traction in altcoins. Bitcoin bulls have been able to able to push the price above the US $40,000 resistance level multiple times but the traction runs out of steam around the current levels.
Technical indicators suggest breaking out towards US $45,000 might not be an easy feat given Bitcoin has failed to do so on several occasions this week.
The main resistance is waiting near the $44,000. On the flip side, there is also a connecting bearish trend line forming with resistance near US $38,000. A clear move below the US $38,000 and $34,000 levels is likely to open the doors for more losses. A well-tested and strong support is near the $30,000 level, below which the price might retest $29,000 but this level has been rock solid for months. Any further losses could set the pace for a move towards the $25,000 level, which doesn’t seem likely soon.
The downside is only mentioned above because there is an overall market expectation that the current rebound to US $40,000 may not be sustainable as there is no solid foundation (nothing substantial other than some Amazon rumors etc which didn’t go well). This also shows itself in the lack of direction and momentum as the buy volumes are still trailing, and any peaks are sharply sold off by bears who have lined up along the resistance levels.
The 50-hour MA (moving average), 100-hour MA, and 200-hour MA are still slightly bear biased (sloping downwards), so the rally might be short-lived unless the market finds itself in an unexpected realm of improving fundamentals.
As of press time, among Top 10 Big Caps, Bitcoin (BTC) is changing virtual hands at US $40,150, Ether (ETH) at US $2,431, ripple (XRP) at US $0.74, Binance Coin (BNB) US $322, cardano (ADA) at US $1.31, Dogecoin (DOGE) at US $0.20, ChainLink (Link) at US $20, UniSwap (UNI) at US $20.50, Polkadot (DOT) at US $15.50 and Stellar (XML) at US $0.28.
On the news recently, the US lawmakers proposed new cryptocurrency taxation that would raise nearly $28 billion in extra tax revenue. The measure includes tighter regulation on crypto brokers to report transactions of digital assets and requiring businesses to report crypto transactions.