Cryptos struggle to hold onto their gains

Bitcoin and Ethereum climbed a little earlier in the week, but lost their gains on Wednesday. The bullish move couldn’t be supported, even as the dollar weakened. Since the start of the year, the bulls have made several attempts to push BTC price back up, but couldn’t sustain an uptrend for long, as the bears fought back. 

Bitcoin climbed above $39,000 on Tuesday raising hopes it would reach the key 40,000 level but dropped below $36,600 on Wednesday. If BTC price declines, it may find support around $33,000, while if the price of Bitcoin goes up, it may find resistance at $43,000 and further up at $44,300. Ethereum climbed above $2,800 on Tuesday but was pushed down to $2,600 on Wednesday, testing its $2,640 level support. If ETH price continues dropping, it may encounter support further down at $2,310. In case its price goes up, it may find resistance around $3,000 and further up around $3,220.

Regulatory concerns are also keeping the price of cryptos down, as many countries around the world are launching a crackdown on cryptocurrencies. US Congressman Ted Budd submitted an amendment to scrub a bill provision allowing the U.S. Treasury to unilaterally prohibit certain financial transactions without public input. If this bill passes, it would put pressure on cryptocurrencies, especially since many other countries are trying to limit cryptocurrency advertising and mining.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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