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Bitcoin, Ethereum, Dogecoin are Still Under Pressure

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Looking at the chart on the daily time frame, we see that the price of Bitcoin is still in consolidation between 50.0% and 61.8% Fibonacci levels. The price received another support in the 20-day moving average that approached us from below. If the support lasts, then we go up again to test the 61.8% Fibonacci level at $ 51,230. If the momentum is stronger and a break above that level, it is a sign that the price will continue towards the 78.6% Fibonacci level at $ 57,350.

Before that, a psychological level of $ 50,000 awaits us. We need a price withdrawal below this support zone for the bearish scenario, especially the 200-day moving average in the area, around $ 47,000. A further drop in the Bitcoin’s price leads us to a 38.2% Fibonacci level to $ 42630. Here we can expect support because this is the place where the Bitcoin’s price exceeds the previous bullish impulse.

Ethereum Chart Analysis

Looking at the chart on the daily time frame, we see that the price of Ethereum is still moving sideways in the zone between 50.0% and 61.8% Fibonacci level from $ 3000 to $ 3400. A 20-day moving average has entered the zone. Based on its movement, we can determine the potential continuation of the trend. Additionally, we can soon expect a stronger momentum outside this zone. For the bullish scenario, we need a break above 61.8% Fibonacci level to test the zone around $ 3500 before continuing towards the 78.6% Fibonacci level.

For a potentially bearish scenario, we need a price withdrawal below this lateral consolidation and 50.0% Fibonacci levels. Aiming for support at the 50-day moving average and 38.2% Fibonacci level at $ 2723.

Dogecoin Chart Analysis

Looking at the chart on the daily time frame, we see that the price of Dogecoin encountered resistance at 61.8% Fibonacci level at 0.34000, and after that, we have a price withdrawal at 38.2% Fibonacci level at 0.27000. We got extra pressure in the 20-day moving average, which is at 0.30000.

Bearish consolidation is still on the chart and based on that, we can expect further price increases below 38.2% of the level. Our target is 50-day and 200-day moving averages in the zone 0.22000-0.24000. For the bullish scenario, we need positive consolidation at this level. This will push the price above 50.0% Fibonacci level to 0.30500. If that happens, we can than expect another price test at 0.34000 at 61.8% Fibonacci level.

Market Overview

Luis De Guindos, the current vice-president of the ECB, said he thought the cryptocurrency should be regulated similarly to any other asset in the market. De Guindos expressed his opinion during summer courses sponsored by the European Parliament and the European Union. Specifically, he stated about cryptocurrencies:

I would not ban them, but issuers must be required to follow the same conditions as other financial means and avoid anything that has to do with money laundering or terrorist funding.

For De Guindos, cryptocurrencies can be used for illegal purposes due to their pseudonymous features. De Guindos has always taken a cynical stance regarding cryptocurrencies, which he calls “crypto-assets” because, in his view, they do not function as valid payment methods. He stated that these crypto-assets have no impact on the region’s financial stability.

This is not the first time that De Guindos has issued such an opinion on cryptocurrencies. He said on May 19 that cryptocurrencies are not real investments due to the fragility of their offer. The ECB is considering the feasibility of creating a digital euro currency. This gives the ECB a tool to combat the rise of private alternative payment systems, such as cryptocurrencies and those given by fintech firms.

The public still expects the ECB to decide on the digital euro soon period. De Guindos thinks that such a currency is truly needed.

Conclusion

Although the crypto market has proven to be a test of time, some billionaire investors do not consider it a place worthwhile for small investors. Investors billionaire John Paulson, who rightly predicted the subprime crisis ten years ago, has called on crypto investors.

Fourteen years later, after the 2008 financial crisis, Paulson expresses concern over excessive speculation in the crypto space. In an episode of “Bloomberg Wealth with David Rubenstein,” Paulson, 65, said cryptocurrencies are a bubble that will “eventually prove worthless.”

“I would not suggest anyone invest in cryptocurrencies,” he added. Well, this is not the first time that cryptocurrency has received billions from billionaire investors. Giants like Warren Buffett have also criticized digital assets to the core.

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