Bitcoin and Ethereum continue to slide to lower levels

The price of Bitcoin continues to fall, and for now, it cannot switch to the bullish trend. Since November 11, when Bitcoin set a new historical high at $ 69,000, we have had a constant price drop since then. In early December, the price fell below $ 41,000, quickly retreating to $ 52,000, but then turned to the bearish side again, making falling consolidation.

Bullish scenario:

• We need new positive consolidation and better price support in the $ 45421-46796 zone.
• At the top, we have a downward trend line, and we need a break above it and the $ 48627-49504 zone.
• The next resistance is in zone 49961-50986 $, then zone 51000-51953 $.
• If Bitcoin overcomes these barriers, we can say that we have partially gotten rid of bearish pressure.
• The next resistance zone is at $ 60,000. And if the price of Bitcoin could go up, it would be an excellent success for BTC.

Bearish scenario:

• We need to continue this negative consolidation and bring the price below the current support zone and psychological level to $ 45,000.
• Below that, we have an open space for a free fall to $ 41,000 December lower low.
• In that space, we come across two potential support zones of $ 39500-41100, and the next below $ 37200-38500.

Ethereum chart analysis

 

Like Bitcoin, the price of Ethereum is in a bearish trend with a tendency to see it at lower levels on the chart. During the previous weekend, the price was in the range of $ 3900-4000. As Monday began, so did the price of ETHUSD go down. It is now at 3775 in the current support zone of $ 3635-3775. A smaller trend line can be drawn from the bottom as a technical pore on the chart.

Bullish scenario:

• We need a new positive consolidation and a return on prices above $ 4,000.

• Then we come across the upper resistance line with a potential resistance zone of $ 4038-4113.
• Further, break the price above, climb to the next resistance in the zone 4420-4490 $, and if the bullish impulse continues, we can climb to the area 4698-4782 $.

Bearish scenario:

• We see that bearish pressure is present on the chart, and we need to continue this negative consolidation.
• We need a further break below the support line and $ 3635.
• We then descend to the December low in the $ 3366-3443 zone.

Market overview

Russia’s central bank has reaffirmed its opposition to investing in cryptocurrencies, citing digital asset volatility as a key motive for its conservative stance. Governor Elvira Nabiullina recently pointed out that the regulator has the means to limit them.

This week, during an online press conference, Russia’s monetary authorities do not welcome Russian citizens’ investments in cryptocurrencies, the head of the Central Bank of Russia (CBR), Elvira Nabiullina, said. She pointed out their instability and potential use in criminal activities as the main reasons for the regulator’s position.

The governor also pointed out the position of the Bank of Russia that the Russian financial infrastructure should not be used to facilitate transactions with cryptocurrencies. She stressed that the regulator could implement restrictions and reiterated the bank’s skepticism about these assets. As quoted by the business news portal RBC, the president of the Russian Central Bank, specified: Cryptocurrencies carry great risks for small investors due to high volatility and use in illegal activities, so we cannot welcome investments in such assets.

 While the Bank of Russia is trying to ban the purchase of cryptocurrencies, the State Duma is developing rules for mining and exchanging coins. They will legalize cryptocurrencies despite the CBR’s opposition to their free circulation, including their use in payments.

Earlier this week, Reuters quoted sources close to the CBR who said monetary authorities were negotiating with market players about a possible ban on Russian investors acquiring cryptocurrencies in the future. One of them revealed that the current position of the central bank is the “complete rejection” of cryptocurrencies. Industry experts have warned that such a move would push crypto investors underground and prevent the state from collecting taxes.

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