Musk has been a major promoter of cryptocurrencies but has turned critical of Bitcoin owing to concerns about its energy use. Crypto investors have turned cautious after the meltdown in May.
Despite a speculative action in ‘meme’ equity counters, pushing them to new highs, the cryptos are lagging behind. However, the performance of meme-based digital tokens like Dogecoin have improved, but the upside has been limited.
Back home, HDFC Bank has officially asked customers to ignore its previous communication warning them about dealing in cryptocurrency transactions, which mentions RBI’s 2018 circular on cryptocurrency. The circular was struck down by the apex court in 2020.
The RBI clarification was hailed by the nascent industry earlier this week. Prior to this, exchanges were operating by taking deposits manually and collaborating with mobile wallet MobiKwik as most banks cut the access.
“The king pair of Bitcoin and Ethereum are slowly yet steadily moving out of their consolidation phase. It is a good sign for the markets as most of the other altcoins tend to follow the price movements of Bitcoin and Ether,” said Edul Patel, CEO and Co-founder, Mudrex.
“The major decline came from Dogecoin as it shed some gains after 3 days of fierce uptrend. This correction in DOGE was imminent. The coming week is poised to be interesting for the cryptocurrency market,” he said.
Analysts adviced investors to remain cautious, despite the belief that the market is likely to ride an upward trend over the next few days, and potentially weeks.
ZebPay Trade Desk’s Tech View
This week, the top three assets by market capitalization, Bitcoin, Ethereum, and BNB have seen a recovery. BTC has now started its recovery journey upward, trading between $36,000-$39,500. This week, the asset saw a rally of 10% and hit $39,000 levels.
ETH, after witnessing a correction, has started on an upward trend, and currently trades at $2,800 levels. The week has been range-bound for the asset, between $2,600-$2,900. BNB has also been impressive this week, up over 30%, and currently trades at the $400 level. Overall, the week has been positive and in the green for most of the top assets.
On the technical front, the top three assets are trading near the important resistance levels, and for the prices to further rally, it needs to break and sustain above the resistance levels mentioned in the table below.
The overall sentiment seems to be positive and the next couple of days will be crucial in determining the further trend in the market.
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
