Although investor’s sentiment since the start of December was strongly optimistic, the time of short term relaxation came during the previous week. The investors' optimism was a bit spoiled by the news that SEC responded to the Coinbase petition from the year 2022 asking for a new regulation which would specifically cover crypto assets. SEC`s answer was clearly negative, noting that the current regulation is sufficient to cover all aspects of “crypto assets securities”. The US will continue to lag behind many other countries in the world, including the European Union, which clearly regulated this type of assets on the market. SEC continues to perceive the crypto coins as securities, despite Ripple`s court win, by which it has been ruled out that Ripple is a security by current US Law on securities. Despite this disappointment, the crypto market capitalization was modestly decreased during the previous week, where Bitcoin lost around 3.4% of its previous value.
BTC was moving in a range between levels around $ 41K and $43K. The market was more oriented toward the down side. The support level at $40K has not been clearly tested, although there have been a few attempts for the price to reach this level. The RSI was only modestly moved toward the downside, ending the week around the level of 58. Moving average of 50 days continues to diverge from MA200 counterpart, without any indication of a slowdown in the coming period.
After the strong hype about BTC ETF`s, the BTC is slowly getting back to normal. The short term reversal has started, but it will take some time until it is fully revealed. During the previous week, the market headed toward the $40K support line, but it has not been clearly tested, leaving it for the week ahead. At this point on charts, there is a low probability that this line could be breached during the following week. On the opposite side, a short term stop BTC might make around the $43K level.
BTC was moving in a range between levels around $ 41K and $43K. The market was more oriented toward the down side. The support level at $40K has not been clearly tested, although there have been a few attempts for the price to reach this level. The RSI was only modestly moved toward the downside, ending the week around the level of 58. Moving average of 50 days continues to diverge from MA200 counterpart, without any indication of a slowdown in the coming period.
After the strong hype about BTC ETF`s, the BTC is slowly getting back to normal. The short term reversal has started, but it will take some time until it is fully revealed. During the previous week, the market headed toward the $40K support line, but it has not been clearly tested, leaving it for the week ahead. At this point on charts, there is a low probability that this line could be breached during the following week. On the opposite side, a short term stop BTC might make around the $43K level.
