Bitcoin, Ethereum start the week strong as countries clarify stance on crypto regulations
US President Joe Biden proposed cryptocurrency regulations in the recently announced budget for 2022.
Crypto 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, Bitcoin is king,” tweeted Cameroon Winklevoss, the founder of crypto exchange Gemini.
In the land of inflation, #bitcoin is king.
— Cameron Winklevoss (@cameron) May 29, 2021
CryptoQuant, a popular on-chain data analysis tool for Bitcoin and other cryptocurrencies, showed that as the amount of Bitcoin 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 #Bitcoin held in spot exchanges continues to decline.
— unfolded. (@cryptounfolded) May 29, 2021
So what’s next for Bitcoin?
The Bitcoin price fell back down to the local support of $34,500, last week but today Bitcoin 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 Ethereum?
Ethereum continues to look good and better when compared against the bitcoin 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.