Bitcoin, Ether and Co are on the up again. While Bitcoin can regain the $ 45,000 mark, Ether climbs back above the 3000 mark. Is this the beginning of a new rally or is it just a flash in the pan? From Timo Emden
Bitcoin rises to three-month high – chart technology continues to brighten
Bitcoin, the most important crypto currency in terms of market size, climbed on Sunday at around 45,350 dollars on the Bitstamp trading platform, its highest level since mid-May or three months. The technical chart perspective is therefore brightening noticeably. Short-term oriented investors in particular are currently in a buying mood. Last but not least, Tesla boss Elon Musk is likely to have ensured a positive mood on the market, who again announced a possible comeback of the cryptocurrency at Tesla around two weeks ago. The cuddle course Musks with Bitcoin and Co obviously seems to please investors more than expected. The declining regulatory pressure from the Middle Kingdom also remains an important factor, so that investors can focus more on positive news again. Technical market factors should now be given greater attention.
45,000 dollars in the spotlight – convinced buyers step back on the sidelines
Obviously, for now, it’s a technical upside breakout. On the one hand, investors are still drawing courage from the latest statements by Elon Musk with regard to Bitcoin. On the other hand, a tempting technical chart constellation is attracting more and more buyers. Against this background, more and more convinced market participants step on the sidelines and dare to take their first steps with the handbrake on.
Risks remain – but are receding into the background
Only in the event of the regaining of the 200-day moving average and the associated equalization of the psychological mark of $ 45,000, investors could target the mental hurdle of $ 50,000 again. However, the pronounced carelessness urges caution. Because the regulatory issue in the market remains a long-running issue.
New regulatory concerns in the US ahead? – SEC chief comments
Concerns that the United States are now tightening the regulatory belt than expected remains a simmering factor of uncertainty. Last Tuesday, the head of the US regulatory authority SEC spoke out in favor of regulation. According to Gary Gensler, the current investor protection in the crypto world is tantamount to a “Wild West”. “Trust is at the center of finances. And investor protection is at the center of trust in the markets,” said Gensler. “If this area continues to grow, or if it reaches its potential as a catalyst for change, we better bring it into the context of public policy.”
The new SEC chief, sworn in by US President Joe Biden since the beginning of the year, tends to be crypto-friendly. The latest statements are likely to have caused irritation among investors, especially since the USA is one of the most important nations for Bitcoin and Co. alongside China. Expectations remain high, especially when it comes to the approval of a Bitcoin ETF. Due to the change in the management level of the Securities Exchange Commission (SEC), investors have increased their chances of obtaining final approval this year. Said hopes are likely to have given way to a more sober approach since last week at the latest.
Ethereum: “London Upgrade” is live – Ether has now climbed over $ 3,000
Brokers have rewarded the going live of the so-called “London Upgrade” or (EIP-1559) with further engagements over the weekend. The second most important crypto currency in terms of market size, Ether (ETH), has now climbed to $ 3,200, its highest level since mid-May. “EIP-1559” improves the underlying Ethereum blockchain in several ways. Since the high fees in the network have often led to displeasure in the past, these should now be more calculable and replaced by a kind of “basic fee”. At the same time, the amount in circulation is to be reduced over time, which could lead to a shortage of supply and thus possibly to a price increase, as long as demand remains constant. Overall, the suggestion for improvement also functions as an important preliminary stage for the higher-level project called Ethereum 2.0, which, among other things, is intended to replace the current energy-consuming production process at ETH (“Proof-of-Work”) with the less energy-intensive “Proof-of-Stake” process.
Bitcoin and Ethereum: These are the points that matter now
Whether it is the beginning of a new summer rally or just a flash in the pan remains to be seen for the time being. The sustained conquest of the $ 45,000 mark remains significant in order to clear the way to $ 50,000. On the other hand, a movement up to $ 40,000 is again conceivable.
For the cryptocurrency ether, the $ 3,000 mark remains the measure of all things. The focus is on the 3,500 mark. Profit taking should come as no surprise given the recent gains. There is currently a tendency for the signs of another new rally to pile up. However, investors should still not praise the day before the evening. Concerns about stricter regulation could pick up speed at any time and dampen the euphoria.