Ethereum bounces from $2,900
Bitcoin has been on a slow consolidation for the last two weeks. Yesterday it went up nearly $39,500. The price failed to break the $40,000 resistance and went back slightly. However, if the price breaks the $37,000 support level, then the price will dive deeper. The price is at the time of writing at $37,668 on the 100 hourly simple moving average.
The price went down after Elon Musk tweeted a meme about a woman telling her man it is over. Elon Musk quoted the meme with Bitcoin and a broken heart emoji. This is followed by another ambiguous meme where a woman is on a video call with a man and the man says “I miss you”
The new proposals about cryptocurrency reporting that appeared on Biden’s budget have also played a fundamental part in the price movement. The proposals require report submission by brokers to the government. Crypto gains and losses should be reported and now, the US government is planning to work with other governments to ensure that US citizens making transactions in other countries report and pay taxes where applicable. The US government will also provide information to the other countries to ensure balance.
However, the price of Bitcoin is likely to go up as Gryphon Digital Mining, a private held company is going public on NASDAQ. Gryphon Digital Mining has merged with Sphere 3D a data management company that is listed on NASDAQ. The $184 million deal will see Gryphon Mining appear since that will be the new name on the list.
Gryphon comes second after COINBASE was listed on NASDAQ. Such moves boost trust in Bitcoin by individuals and institutions that were uncertain about investing in cryptocurrencies. If they can’t invest by buying Bitcoin then they will invest through buying shares.
Ethereum has had an uptrend. It went up to a high of $2,885 before correcting lower. Its resistance is at $2,880 but mainly the $2,880 and then the $3,000 barrier. Ethereum is doing well after it went down to prices below the $2,000 over the May crash.
Ethereum co-founder Vitalik Buterin lost his billionaire status after the prices went below the $2,000 mark. He also gave an explanation about the impossibility of increasing crypto block size that was suggested by Elon Musk. He gave reasons as to why the increase wouldn’t be easy. He also mentioned Elon Musk’s influence on crypto and how people learnt their lesson in the crash and how soon Elon Musk’s tweets will not matter.
Prices have started to go up. When Bitcoin went down to below $31,000 it looked like it would completely crash. But as it stands, the price has gone up by over 20% as of the last low. The prices are also unlikely going to go below the $37,000 support level. The chats are looking bearish since the harsh tag buy the dip was trending and analysts gave an analysis of the prices would be.
The market is also on consolidation awaiting for hedge funds to join and boost the price by bigger percentages. This will probably take time and HODLing to see maximum profits.
Can I still buy the dip?
Most cryptocurrencies are still on the dip. The prices have not yet recovered from the May crash. Bitcoin is aiming at the last high of $64,000 and it is barely half the price now. Ethereum is eyeing a high of $4,332 and it is also not far from half that price. Most altcoins are in the position and are aiming at last highs. It is now the best time to buy crypto because prices are down and relatively affordable. However, remember cryptocurrencies are volatile, invest with caution.