Bitcoin has already lost half of the growth that could be observed after reaching annual lows at the end of January this year. While buyers are not very active and most likely the whole focus will shift to support in the area of $ 37,000, we will talk about the technical picture a little lower. The situation is similar to ether, which also has a place to fall.
Before we figure out where it is better to buy from and where it is better to sell, I would like to say a few words about the study of the International Monetary Fund. According to recent figures, cryptocurrencies are more popular in countries that are considered corrupt, as well as in countries with strict capital controls, which raises the case for stricter regulation of the industry. Of course, it would be surprising if such an organization made a different statement, giving the "green light" for cryptocurrencies, but the fact that the report and conclusions were published just when the whole world is allegedly struggling with Russia's attempt to evade sanctions with the help of cryptocurrencies at least causes some skepticism.
The report says that countries should require intermediaries, and we are now talking about exchanges and digital exchangers, to implement "know your customer" procedures - KYC identity verification standards, which are designed to prevent fraud, money laundering, and terrorist financing. Some countries, such as the United States, have already introduced such controls for many of the largest exchanges and organizations related to cryptocurrencies. However, the level of supervision varies greatly from one country to another. In China, for example, they decided not to bother their heads and completely banned all cryptocurrencies and transactions related to them - especially when talking about the work of crypto exchanges or other companies in this area.
The study also says that crypto-assets can be used to transfer proceeds from corruption or to circumvent capital controls, but it was not noted which specific countries are in question. The initial data on the turnover of cryptocurrencies were obtained from information collected during a survey conducted by the German company Statista. The survey covered 55 countries, from 2,000 to 12,000 respondents in each. Participants were asked if they owned or used digital assets in 2020. Statista stated that its results are worth paying attention to, but also noted that they should be interpreted with caution, given the small sample size and data quality. Considering that by April 2022, the situation in the cryptocurrency market has changed a lot, this report and the IMF study are more formal, where the main conclusion is the need for strict regulation of the sphere - in general, nothing new.
As for the technical picture of bitcoin
At the moment, the market is under the control of bears, and investors' fear continues to grow more and more every day, bringing bitcoin back from heaven to earth. The 200-day average around the $ 48,550 mark has remained somewhere very far away, and to return the initiative from buyers, active actions are needed in the area of the 100-day average, which is just located in the area of $ 41,220. Only a breakdown of this range will open the possibility of reaching the highs in the area: $ 43,200 and $ 43,530. The fact that bitcoin is already beginning to gradually enjoy support from major players may mitigate its fall in the future, which is likely to occur after the release of inflation data in the United States - albeit not immediately, but the cryptocurrency market will be forced to react to this, as it has a high correlation with the American stock market. In the event of a decline in the trading instrument, only a breakdown of the $39,290 level will fail the trading instrument below the minimum of $ 37,500, and there it is close to $ 36,000.
As for the technical picture of the ether
The focus has shifted to the new resistance of $ 3,150. A break of this level will quickly return the ether to $ 3,306, and there is a 200-day moving average very close, which passes in the area of $ 3,480. Only the consolidation above will continue the upward trend for the trading instrument. The breakdown of $ 3,480 will serve as a new impulse to reach the levels of $ 3,540 and $ 3,685. In case of a return of pressure on ETH, purchases in the area of large support of $ 2,950 are not excluded. A break in this range will be a reason to go to the lows: $ 2,740 and $ 2,500, where the major players will again begin to actively act.
