News from China? Or the passionate feelings of its fans?
As one of the most unpredictable assets, BTC is interesting mostly for young investors. For people like me that investing and trading for few percentages of movement, Bitcoin and its crazy moves is risky, however, there are many young traders and investors that they started trading with cryptos and these kinds of movements are ok and normal for them, and that is also the reason for many ETF and investment institute to stay a bit far than this. We want it or not, this is part of market demand and even can be the future of that as well.
Why did I start with that? As you know, in the past few months regulation process over the crypto market and its exchanges is one of the most important topics that move the market. However, the question is that legalization is good for cryptos or something negative? How do we have to react, and how does the crypto market react to that?
Legalization means more use, and in this case, institutes also will take a part in the market step by step. More investment institute means more wise moves. And this is what will make a difference in the future. If we want to learn from history, before any new huge move, we have to see a bit more calm in the market and more decline. Bitcoin needs to firmly establish itself.
From the technical point of view, yesterday and in the Asian season, buyers moved the market all the way above 44K. However, the movement was not powerful enough to breathe the key resistance at 45K. Breathing this level can cause another wave up in the short term. The key and psychological resistance sit at 50K, and if in the next few days the asset can not pass it, more than hope it will create frustration of further growth. On the flip side, key support currently sits at 40K, and breaching under this level also will open the doors for more moves towards the 20K area. RSI at 42 and low market liquidity and volume at the moment can not support reaching higher levels.