Bitcoin’s price has finally reached the bottom, analysts claim
Analysts believe that Bitcoin has finally found a local bottom around AUD$52,500, with things looking better for the asset in the near term.
- Bitcoin's market dominance index (DI) has continued to remain above the 40% mark for over a month running.
- A bill seeking to regulate cryptocurrencies has been tabled and greenlighted by Brazil's Economic Affairs Committee (CAE).
- Despite seeing red recently, Bitcoin's monthly gains still stand at a respectable 4.3%.
Bitcoin, the world's largest cryptocurrency by total market capitalisation, continues to be faced with bearish action resulting in the digital asset incurring weekly losses of 15%. To elaborate, on 22 February, BTC dipped as low as AUD$50,000 (US$36,000) before mounting a strong comeback, with the crypto currently trading for AUD$52,195.
While ongoing tensions between Ukraine and Russia continue to keep financial markets across the globe in a spin, most crypto analysts believe that as long as Bitcoin is able to hold ground above its all-important AUD$41,500 (US$30,000) resistance, everything will be fine. On the subject, a popular Twitter pundit opined:
"Basically, unless we break below US$30,000 and remain below US$30,000 for weeks, I lean bullish. And the US$28,000–$30,000 level has acted as very strong support for a year now."
Another pseudonymous crypto expert by the name of Crypto5Max posted a technical analysis (TA) chart of Bitcoin's Advanced NVT Signal — a metric that is calculated by dividing BTC's market capitalisation by its 90-day moving average — suggesting that the asset has found a local price bottom at AUD$52,500 (US$38,000) while continuing to accrue a growing amount of fundamental strength.
Crypto regulations being discussed by the Brazilian government
With Bitcoin adoption having grown throughout Brazil over the last couple of years, the South American nation is looking to regulate its local crypto economy moving forward. In this regard, a detailed regulatory bill was recently tabled and approved by the country's Economic Affairs Committee on 22 February, which suggests that the potential legislation may be given a green light and will make its way onto the Senate floor soon.
If passed by the upper and lower houses, the document will be presented in front of President Jair Bolsonaro and brought into effect immediately. To elaborate, the legislative document outlines a number of provisions for the government to "guide the administration" of virtual assets and their associated services. On the development, Brazilian Senator Irajá Abreu said:
"The intention of the project is to curb or restrict illegal practices, such as money laundering, tax evasion and many other crimes. There is a market that is licit, legal, which is the vast majority of this market, but there are exceptions."
Grayscale seeks public opinion on its BTC ETF application
As the fate of Grayscale's Bitcoin spot exchange-traded fund (ETF) application continues to hang in the balance — with the US Securities and Exchange Commission (SEC) still considering whether to approve or deny the offering — the popular American asset manager has sought to mobilise local investors, requesting them to submit their views on the application with the regulator.
Earlier this week, Grayscale CEO Michael Sonnenshein revealed that he was going to be initiating an "advocacy campaign" for investors to speak their minds in front of the SEC regarding the need for a Bitcoin ETF in the market before the regulatory body makes its decision sometime in the near future.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.