Seeking regulation to support growth

Fibo Quantum

  • BTC/USD eyes levels below $9,000 in its final consolidation stage.
  • Ethereum and XRP see tensions between bullish setups and low volatility.
  • The U.S. Congress discusses the need to update rules today.

 

The U.S. Congress holds a hearing on regulatory issues concerning cryptocurrencies and blockchain technology.

One of the speakers, Mr. Jeremy Allaire, Co-Founder, Chairman And Chief Executive Officer, Circle on behalf of The Blockchain Association, will present a plea in favor of regulation of the sector in the country.

Mr. Allaire warns in the document before his statement that the US is lagging in providing the industry an adequate regulatory framework.

As an example of this line of argument, he gives a case that the American authorities are using a 1947 law – the Howey test – when defining whether a crypto asset is a security or not:

“In the U.S., one of the main factors that determine whether or not a crypto-asset should be regulated as a security is the Howey test, formulated by the Supreme Court in 1946. If an asset is deemed a security, it must be registered with the SEC, and the team behind it must abide by a wide range of regulatory obligations.”

Mr. Allaire advocates the widespread implementation of cryptocurrencies. In the next ten years, they will coexist with fiat currencies and bring significant improvements in the speed and costs of financial exchanges.

 

ETH/BTC Daily Chart

 

The ETH/BTC crypto cross is trading around 0.02189 and narrows the daily range even further, with a consequent drop in volatility

Above the current price, the first resistance level is at 0.0229 (price congestion resistance), then the second at 0.025 (price congestion resistance and EMA50) and the third one between 0.027 and 0.028, confluence level of the SMA100 and two price congestion resistances.

Below the current price, the first support level is at 0.021 (price congestion support), then the second at 0.020 (price congestion support) and the third one at 0.0155 (price congestion support).

 

 

The MACD on the daily chart shows an upward cross profile but shows some exhaustion in the absence of new bullish impulses.

The DMI on the daily chart shows how while the bulls remain weak, the bears renounce new attacks and also retreat. If this continues, ETH/BTC may end up technically “dead” by starvation. Beware of resuscitation tasks that may turn violent.

 

BTC/USD Daily Chart

 

BTC/USD is currently trading at $9,489 and is unable to recover the EMA50 level. The approach remains bearish with possible targets below $8,500.

The duration of the consolidation process is typical, as, after the first half of the year, the moving averages were too far away. 

It is much more favorable for the medium and long term to move with the moving averages close than to be exposed to falls of more than 20% for mere reasons of technical excesses.

Above the current price, the first resistance level is at $9,650 (price congestion resistance and EMA50), then the second at $10,650 (price congestion resistance) and the third one at $11,300 (price congestion resistance).

Below the current price, the first level of support is at $9,150 (price congestion support), then the second at $8,835 (SMA100 and price congestion support) and the third one at $8,425 (price congestion support).

 

Interactive Chart

 

The MACD on the daily chart shows how the bearish slope begins to decline. The typical pattern points to the beginning of the final bearish phase, which can increase volatility,

The DMI on the daily chart shows bears slightly increasing their advantage over bulls. The buyer side, on the other hand, manages to stay above the ADX line.

ETH/USD Daily Chart

 

ETH/USD is currently trading at $207.73 and follows the low volatility trend of its fellow analysts.

The chart shows how the EMA50 is set to cross down the SMA100, which will lead to a more complex scenario, with opposing forces and possible increased volatility. 

Above the current price, the first resistance level is at $215 (price congestion resistance), then the second at $225 (price congestion resistance) and the third one at $240 (price congestion resistance, SMA100, and EMA50).

Below the current price, the first level of support is at $206 (price congestion support), then the second at $200 (price congestion support) and the third one at $192 (double price congestion support and SMA200).

 

Interactive Chart

 

The MACD on the daily chart shows a bullish cut profile that has not yet materialized. It is a rare profile, and the development is somewhat uncertain.

The DMI on the daily chart shows how the two sides of the market remain at the same levels for 20 days. Bears lose the support of the ADX line and should gradually lose strength.

 

XRP/USD Daily Chart

 

XRP/USD is trading at $0.309 and is also suffering from a general decline in volatility.

Above the current price, the first resistance level is at $0.32 (double price congestion resistance), then the second at $0.33 (price congestion resistance) and the third one at $0.335 (price congestion resistance).

Below the current price, the first level of support is at $0.30 (price congestion support), then the second at $0.295 (price congestion support) and the third one at $0.293 (price congestion support).

 

Interactive Chart

 

The MACD on the daily chart shows an upward cross profile but almost no inclination and even less openness between lines. The output of this structure can be violent.

The DMI on the daily chart shows bulls without initiative, losing strength with each passing day. On the other hand, bears remain very stable and confident.

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