Bitcoin soars above $41,000 despite IMF warning that "will attract regulators"
By Noemi Jansana / Alejandra Zamora
Date: Wednesday 20 Apr 2022
(Sharecast News) - Bitcoin leaves rallies on Wednesday to price levels above $41,000 and prolongs a recovery move initiated after touching five-week lows at $38,550 (in round numbers). Traders are doing their best to stay afloat above the $40,000 level, a key price for the bulls to continue the rally. However, analysts warn that the digital currency continues to consolidate in a wide range between $38,000 and $48,000.
Last week, the price of the largest cryptocurrency by market capitalization fell and Bitcoin closed with a bearish tone on its weekly chart. "The price is looking for higher and lower support. Most altcoins followed similar price movements," commented Alejandro Zala, country manager of Bitpanda in Spain.
Now, the shortest-term support is back at $40,000, where "traders know that for the 'bulls' to succeed, Bitcoin has to stay above this critical price level," warned Naeem Aslam, head of analysis at AvaTrade. The first resistance is at $42,000, a level to overcome to reach the area of major importance of $45,000.
The expert called for caution, however, as on the fundamental side, the new IMF warning about countries using cryptocurrencies to avoid sanctions is in the spotlight. Cryptocurrencies are being used to sell oil and gas to some extent by countries such as Iran and Russia. There is also concern that these countries are using oil and gas resources to fuel cryptocurrency mining, which is another source of revenue, and to circumvent all sanctions.
"The IMF's warning will certainly bring more regulatory attention to crypto companies, crypto exchanges and crypto mining," Aslam stated.
Overall, the market ignores these risks and leaves rises for all 'altcoins', bringing the total capitalization to $1.925 trillion. Ethereum follows Bitcoin in its behavior and is also looking to gain momentum to overcome the $3,200 resistance, while holding above $3,000 support. Terra remains positive, up 6% and is one of the tokens rising the most, along with Solana and Polkadot.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN