Bitcoin gained upside momentum after Fed Chair Jerome Powell stated that he had no intent to ban cryptocurrencies. He also added that he wanted more regulation for stablecoins.
This is a positive development for the whole crypto market as regulatory risks have put material pressure on market sentiment after the recent crackdown on crypto in China.
Not surprisingly, most cryptocurrencies are moving higher after Powell’s comments. Ethereum managed to settle above the 50 EMA at $3,035 and is moving towards the 20 EMA at $3,115. Dogecoin settled above the resistance level at $0.20 and is testing the next resistance which is located at $0.2050, while Shiba Inu is trying to settle above the 50 EMA near $0.0000073.
Bitcoin managed to settle above the 20 EMA which is located near $44,000 and is trying to settle above the 50 EMA at $44,600. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.
In case Bitcoin settles above the 50 EMA, it will test the next resistance level at $45,000. A move above the resistance at $45,000 will open the way to the test of the resistance at $46,000.
If Bitcoin manages to settle above the resistance at $46,000, it will continue its upside move and head towards the $47,000 level. A successful test of this level will push Bitcoin towards the major resistance at $48,000.
On the support side, a move below the 50 EMA will push Bitcoin back towards the 20 EMA. In case Bitcoin settles back below the 20 EMA, it will gain downside momentum and head towards the support at $42,600.
A successful test of the support at $42,600 will push Bitcoin towards the support at $41,300. If Bitcoin declines below this level, it will move towards the psychologically important support level at $40,000. In this scenario, Bitcoin will have a good chance to develop strong downside momentum and settle back in the wide $30,000 – $40,000 range.
