Last week was flat for the crypto market. Only on Sunday, February 17, bitcoin price made an attempt to break through the $3800 resistance level. In a matter of hours, the price broke through the barrier, reaching a high of $3864. It was soon corrected to a lower value.
Moving averages are currently below the price. EMA50 is higher than EMA100, a signal to buy. Moving averages EMA50 and EMA100 will be supported at levels of $3710 and $3680 accordingly. The MACD is currently placed heavily in the bullish zone.
To achieve growth, the price needs to break the next resistance level of $3880, above which the price could test the $4000-4080 resistance level.
Looking into a 4-hour time frame, we can still see a signal towards further growth.The blue line on the graph represents the resistance level that was set on January 19, which was tested today. Moving averages remain below the price. EMA50 is higher than EMA100, supported at $3676 and $3615 accordingly. The MACD is also in the bullish zone. Growth potential is maintained, and if the price breaks the resistance level of $3880, it will open the range of $4000-4080, followed by the next level at $4220.
The MACD has almost entered the bullish zone. EMA50 is below the price and offers local support at the $3753 level. While the faster moving average EMA50 remains below EMA100, the signal towards continued decline remains. For the signal to switch to growth, EMA50 needs to overcome EMA100. At present, EMA100 at the level of $4600 will serve as a strong resistance, with several levels for the price to overcome – 3880, 4080, 4220, 4390, and 4500. All of these levels can be used as benchmarks and future targets.In case of further decline, the price will meet support levels at 3750, 3630, 3560, 3410, 3215.
And what about the latest news?
News about two American pension funds investing in cryptocurrencies was met with great excitement from crypto enthusiasts. This exact wording was used to cover the event, but it’s worth noting that these pension funds did not make direct cryptocurrency investments, instead investing in the Morgan Creek Digital venture fund, which is focused on blockchain projects. The venture fund received requests to the total sum of $40 mln from two pension funds in Fairfax, Virginia. This is a major development for the industry, considering that pension funds are among the most conservative institutional investors.
There was more positive news from Western Union. Their senior vice president Molly Shea declared the company’s willingness to use Ripple technology in international payments. The company is notably testing the xRapid payment solution. According to Molly Shea, Western Union will start by testing Ripple technology on the US dollar – Mexican peso currency pair.
There’s also good news in the regulatory field: Luxembourg’s parliament passed a bill into law to regulate the use of blockchain technology in the financial services.The new law will grant blockchain transactions the same legal status as transfers based on traditional financial resources. The law is set to add transparency to cryptocurrency market transactions and add legal certainty to securities-based transactions when using distributed ledger technologies. Luxembourg is known for its progressive legislative attitude towards cryptocurrencies. In 2015, authorities were issued the first ever cryptocurrency license.
At the time of writing, bitcoin price stayed below the previous resistance level of $3800, which remains in force during the currency’s rise. The market demands optimism! For bulls to gain sufficient power, the price needs to break through $4600 at the very least, and until then, any attempts at growth will be shot down.
Wishing you great luck and profits!