Bitcoin gained 0.31% on Tuesday after 6.49% rally on Monday. The momentum on Monday continued yesterday to the top of $ 4,081 before the main crypto currency dropped this morning low at $ 3,968.
The broad-based gains for most of the day were backed by Bitcoin’s return above $ 4,000, but news was not over. The two US regulators, SEC and CFTC, gathered at an event titled “The Year ahead for Capital Markets”. SEC commissioner, Hester Pierce said:
“At the SEC we’ve been unwilling to sign off on a Bitcoin ETF, an exchange-traded product based on Bitcoin. My concern about our approach in that area is it looks a little bit like a merit-based approach judging the underlying bitcoin markets.”
Pierce further sheds light on the unregulated nature of the crypto market, adding: ” There are lots of markets that aren’t regulated but we nevertheless build products on top of them.”
Despite the current rally, we saw a reversal of the market late yesterday, with some of the major cryptos wiped out some of the profits made earlier. In my opinion, this was a reminder of downside risks. And the last rally is likely to fall into a bearish trap, considering the lack of a catalyst to drive the recovery in February.
Only time will tell if the bulls will be able to hold the reins of the crypto market
But there are several events that could potentially trigger a new rally in the coming weeks:
Binance launches DEX: Despite the bear market, Binance remains a bright spot. It’s an institution, a trusted trading hub, that does well with safety threats on the crypto market. And he does not bother to remove sluggish or risky coins and tokens. The upcoming Binance DEX can boost Binance Coin (BNB) and generate more trading activity.
Adoption BitTorrent tokens: BTT will increase awareness of the TRON project and will probably lead to a wider awareness of BitTorrent users. The digital asset spreads to the ecosystem with monthly airdrops. So far, the actual use of BTT remains unknown, but the token has started at $ 0.0000007 and rises to $ 0.0009. This is a growth rate that has not been observed for some time in the crypto market. BTT is on the rise and ranks among Binance’s most well-traded tokens and its speculative character might reinforce other altcoins.
Bakkt’s futures exchange decision: Bakkt resubmitted his proposal to the US CFTC, and this could lead to further regulatory action. While the rapid approval of the Bakkt or Bitcoin exchange-traded fund may not be immediate, the rules and potential of the crypto sector become clearer with each new regulator’s involvement.
Litecoin halving: A little further in the future, this event can cause a rally for the LTC. The asset remains relatively stable against the BTC, and despite talks about dying, it still manages to take part in multiple pairs. The LTC halving may have already raised prices to $ 43 from the recent laws, helping to return optimism among the top five coins.
Stock market optimism: The general expectation of continuing economic strength and liquidity may increase the faith that the crypto market will continue to see the inflows. Stock market optimism may push demand for high returns, and in the short term, recovering from last autumn sales can also help digital coins and tokens.
What follows next? Technical levels are promising
After more than 411 days of bearish moods and falling prices, in January and February, the crypto market saw some cases of growth. My assumptions are that Bitcoin will continue to trade up to $ 4,100. The closest resistance is the high of yesterday at $ 4,081.
Failure to hold onto $ 4,100 can send Bitcoin down through the first $ 3,968 support. The digital currency may even test the bottom $ 3,943.4 before any other refund. The attitudes of the entire market will have to deteriorate significantly to expand future Bitcoin’s decline.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.