BTC, ETH start the week strong as countries clarify stance on crypto regulations
2 min readCrypto markets started the week green admist generally favorable developments from China, India, and the US, with all three clarifying recent comments and circulars to alleviate fears of an impending crypto ban.
In the US, a new budget presented by President Joe Biden included two proposals for the crypto markets aimed at helping to control tax evasion taking place via cryptocurrencies. At the time, the markets reacted to this release and dips could be seen across the market.
But later rolled out a new stimulus, worth a staggering $6 trillion, for the economy, one which sent the markets spinning to green territory. “In the land of inflation, BTC is king,” tweeted Cameroon Winklevoss, the founder of crypto exchange Gemini.
In the land of inflation, #BTC is king.
— Cameron Winklevoss (@cameron) May 29, 2021
CryptoQuant, a popular on-chain data analysis tool for BTC and other cryptocurrencies, showed that as the amount of BTC held in exchanges continues to decline, which can be seen as a good sign for the long-term value of the asset as there are fewer sellers in the market.
The amount of #BTC held in spot exchanges continues to decline.
data: @cryptoquant_com pic.twitter.com/wFKbFFjNVx
— unfolded. (@cryptounfolded) May 29, 2021
So what’s next for BTC?
The BTC price fell back down to the local support of $34,500, last week but today BTC starts the week with a nice bounce up to the $37,000 region.
The price has been ranging in between the $32,000 level and the $38,000 since the past few days and it is likely one of the ranges will give way for a big move soon. As it is, the more times a support/resistance is hit the weaker it becomes. There is a good volume push as well at the start of the week and traders can expect favorable price action for the next couple of days.
The Relative Strength Index, however, continues to be oversold, which is generally a good sign for price momentum.
What’s next for ETH?
ETH continues to look good and better when compared against the BTC chart after a dip last week the price seems to be bouncing well and looks to be going for the $2,750 resistance.
Once that resistance is flipped, we can expect ETH price to show a solid uptrend. And with the current momentum, it looks like the price will go onto hit that resistance within the next few days. With the monthly close upcoming it’ll be interesting to see where ETH manages to close.
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