Bitcoin saw another optimistic week, jumping considerably over the previous two weeks from the levels below $7,000. Despite negative comments from the San Francisco Federal Reserve (Fed) President John Williams, the cryptocurrency relished popularity in number of countries.

Technical analysis

Bitcoin was seen trading at $8,818.40, boosted by low prices and keeping its popularity in number of regions.

Next resistance level could be seen only at the round $9,000 level, which proves to be a stronger one according to trading from March 21 and 22 as well as before. Further resistance levels, however not that popular as the previous one, are seen at $9,300 and $9,700.

On the other side, in the event of drops on negative news (in particular the regulation news), bitcoin could see a fall to $8,250. Further support levels are seen at $7,800 and around $6,700, however the latter one is seen improbable right now as it worked as a support in the event of very negative news.

The Simple Moving Averages (100 SMA, 200 SMA) are about to cross at a H4 chart when the short term 100 rising above the longer term trendline.

BTC/USD, bitcoin

BTC/USD

Fundamentals

Bitcoin remains in bullish mode for the last two week, reaching even better performance as most of the other cryptocurrencies, based on a significant demand over the last two weeks. This can be seen at rising volumes, reaching even double volumes over the previous sessions.

Nevertheless, the persisting opinion of the U.S. central bank remains unchanged as Fed’s Williams reiterated that cryptocurrencies do not “pass the basic test of what a currency should be.” He pointed to the fact that one of the aspects of currencies, the store of value, is missing in this case.

He inclines to the idea that cryptocurrencies are beneficial for the purpose of technology development. However, in case of supply of currency, he wants the government and central banks to keep their authority. At the end, he admitted that his long-term career in central banking may leave him “very biased” in relation to cryptocurrencies.

Williams is expected to become the head of the New York Fed in June after the incumbent President William Dudley.

Optimistic news from Baltic countries

However, the Baltic states proved to be persisting supporters of cryptocurrencies as the new instruments found their place in number of sectors, from online trading to real estates or health care.

Now, the payments in digital currencies won’t be limited only to restaurants, cafeterias, etc., but they will be available for buying lands, houses in Lithuania or Latvia. Also the Estonaina realtor LAAM Kinnisvara announced his accepting of cryptocurrencies.

Top image: Adobe Stock

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About Author

Marek Bocanek

After finishing law and economic studies, Marek launched his career in Brno, Czech Republic in the financial sector, specializing in capital markets and related legal issues. After 6 years of experience in the industry he moved back to Bratislava, Slovakia, where he worked as an analyst in the forex market for another 3 years. Simultaneously he was a trader focused on the major forex pairs and oil futures.

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