In the past week, speculators feel frustrated because the price of digital currencies moved in a narrow range to go below US$9,000. Chances to gain benefits are less although the market is not yet bearish.
The news about the central bank’s digital currency (CBDC) and blockchain continues making headlines in China. It seems the speculation is weak and lacks support. It is expected that the Chinese Yuan would be able to pull the price up, which will benefit strong speculations once again.
Binance is still making headlines, especially adding another fiat currency to the exchange. Also, new digital currency operators are rolling out more investment tools such as derivatives, options and loans. These should help prop up investments in the medium term. Digital currency market lacks new motivation for new investors.
Bitcoin
Overall Picture: Sideways
After the Breakout, the red trend line crosses the 200-day moving average (EMA200). Bitcoin took two weeks to move sideways. In the past weeks, Bitcoin was under EMA200. However, the significant support line remains at US$7,400. To determine if it is on the uptrend, it should move above EMA200 in the short run at a stable range including the red trend line. It is recommended that investors wait to buy when the RSI hit 30 (Oversold) to speculate for short-run benefits until the price is clearly improving.
Ethereum
Overall Picture: Sideways
After the Ethereum broke the red trend line, prices moved without a clear direction. In addition, it cannot stand over the 200-day line. The significant support line remains at US$150. Investors are advised to wait and see when the short-run stands above EMA200 line, that’s when it is time to purchase.
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