Bitcoin defends the support area of 3,650 USD, fluctuating slightly above this level. With increasing bullish sentiment on the markets, the cryptocurrency has a chance now to live up to its hype and promise, as on Friday it rallied to its highest level in three weeks without making a new low for the year.
The picture is more bullish today, and the three former resistance levels have now probably become support. The price is within a relatively wide area without any key levels.
According to the analysts, there is a key bearish trend line on bitcoin price, formed with resistance at 3,640 USD. The price is likely to correct lower towards the 3,550 USD or 3,500 USD support levels before a fresh rally. The new bullish rally may rise towards the resistance levels of 4,237-4,692 USD.
However, the long-term outlook remains bearish. Bitcoin was on the downtrend towards the previous low demand level of 3,247 USD and its lower lows movement could not reach the targeted price level. On February 8, the bulls gained certain momentum which pushed Bitcoin price up and penetrated the supply level of 3,679 USD but unable to break up the 50-day EMA dynamic resistance. Bitcoin price is currently trading in between the 21-day EMA and 50-day EMA and the two EMAs were gradually coming closer to each other as an indication that consolidation is ongoing on the daily chart in the crypto market.
other cryptocurrencies are almost stable with Ethereum succeeded to overtake Ripple again to become second largest cryptocurrency by market capitalization. Ethereum rose by 2% to 121.01 USD, while Ripple is stable at 0.3036 USD. EOS, Binance Coin and Bitcoin SV are also on the rise today.
The total capitalization of the cryptocurrency market is 121.101 billion USD.
Ethereum price analysis
Ethereum price performed really well and rallied above the 115 USD and 120 USD resistance. The cryptocurrency even broke the 125 USD resistance and traded as high as 128.17 USD before correcting lower. The cryptocurrency is on the rise and succeeded to overtake Ripple again to become the second most valued cryptocurrency.
However, there is strong support formed near the 122.00 USD level (the previous resistance). The 25 simple moving average is acting as support near the 122.50 USD level.
More importantly, there is a short term bullish trend line in place with support at 122.00 USD on the same chart. Finally, the 61.8% Fib retracement level of the recent wave from the 118.00 USD low to $28.17 USD high is near the 122.00 USD area.
Therefore, the 122.00 USD level might act as strong support. If the price extends the current decline, the next stop for sellers could be near the 118.00 USD swing low. Any further losses could lead the price towards the 1.236 Fib extension level of the recent wave from the 118.00 USD low to 128.17 USD high at 115.45 USD.
European Parliament discusses cryptocurrencies legislation
Ripple is starting to permeate the thoughts and conversations in the European Parliament, which could spell legitimization for cryptocurrencies.
Ripple has always been a cryptocurrency that has looked to regulators to get their okay before advancing too far along. Now, there is a lot of ice being broken between the cryptocurrency company and the European Parliament, which is starting to look into the benefits of cryptocurrencies.
Eva Kaili spoke of her having faced a lot of resistance at the first blockchain conference she attended in 2014 just because she was a politician. She went on to say that it made her more intrigued and curious about the technology and she decided to learn more about her.
“I believed that if we are not positive, the resistance of traditional players will only increase and even kill a technology that has so much potential”, said Eva Kaili. She also added that there was a huge contrast between then and now and said the scenarios had changed a lot. In addition, it continued that the regulation of blockchain and digital assets was well accepted by European banks and leaders from various financial institutions.
The position of world leaders and countries has changed a lot. The blockchain and cryptocurrency are accepted and even viewed by many huge companies and institutions.
In addition, central banks and government are considering these technological innovations. They are aware that they can change the existing framework, especially when it comes to cross-border payments or translations.