The bitcoin exchange rate continues to gradually decline, approaching a rather important support around $ 28,600, which puts further attempts to continue the growth of this asset at significant risk. Things are no better for ether, but we will talk about the technical picture of these trading instruments below. Now I would like to note the recent speech by the president of the European Central Bank, Christine Lagarde, who believes that cryptocurrencies are not worth a penny. Recently, Lagarde has been speaking a lot in the media and touches not only on the course of the European Central Bank and talks about future policy, but also expresses her dissatisfaction with cryptocurrencies, which, in her opinion, carry significant risks for the economy and its holders as a whole.
"According to my very modest assessment, the cryptocurrency is worth nothing. Given that its fundamental value is not justified by anything and does not rely on anything – it does not represent anything - there is no underlying asset that could serve as a security anchor," Lagarde said about cryptocurrency in an interview.
More recently, several European politicians also spoke on the topic of cryptocurrencies, but an attempt to ban the Proof-of-Work protocol on the territory of the EU attracted more attention. A recently reviewed provision required all crypto assets to meet the EU's minimum environmental certification standards regarding their consensus mechanism used to verify transactions. For cryptocurrencies such as bitcoin and ether, whose turnover in the EU is quite high, the rule proposed a phase-out plan to transfer their consensus mechanism from Proof-of-work to other methods that consume less energy. However, a new rule that could ban the popular bitcoin cryptocurrency in the European Union has been rejected. The European Parliament's Committee on Economic and Monetary Affairs voted by 30 votes to 23 to exclude this provision from the Markets in Crypto Assets (MiCA) project, a comprehensive EU regulation on digital asset management.
Returning to the president of the European Central Bank, she also called on world politicians to introduce rules to protect inexperienced investors making big bets on digital assets. She operated on the fact that cryptocurrencies have fallen sharply this year, and bitcoin - the largest in the world - has lost more than half of its capitalization since its November record high. "I'm worried about those people who think they can earn a lot from this, not understanding the risks they take on themselves and which can be expressed in the complete loss of their funds. Therefore, I believe that this area should be fully regulated," Lagarde said.
As noted above, the skepticism of the former head of the International Monetary Fund regarding cryptocurrency is not new. She has previously expressed concern about the impact of digital currencies not only on the environment but also because of their potential use for money laundering and sanctions evasion.Since last year, several global central banks have been working hard on their digital alternatives to cash. According to Lagarde, the digital euro will be "very different" from cryptocurrencies.
The technical picture of Bitcoin
It is very early to say that buyers are actively returning to the market, rather, on the contrary, everyone is waiting for how the trading instrument will behave in the area of the new lower border of the side channel. To develop the initiative on the part of the bulls, active actions are needed in the area of $ 31,800, but before that, you need to try to return above the prices of $ 29,600 and $ 30,700, which have been repeatedly tested in the last few weeks. Only consolidation above these two ranges will quickly return the trading instrument to $ 33,030, allowing investors to calm their nerves a little. A breakdown of the $ 28,600 level and the absence of buyers will bring the trading instrument back to a minimum of $ 2,670, and there it will be close to $ 26,770, which will turn the market upside down again and cause panic on the part of many investors.
As for the technical picture of the ether
Yesterday's fall in the ether brought it back below the price of $ 2,020, which is now the nearest resistance. Only the return to control of this range will shift the focus to the rather important resistance of $ 2,140, above which it has never been possible to get out after the collapse of the ether in early May of this year. It will be possible to talk about building an upward trend only after a breakout of $ 2,140, which will quickly return the ether to $ 2,295, and then very close to $ 2,430, which will be a serious problem for traders. Only consolidation above will allow building an upward trend for the trading instrument with the prospect of updating the highs in the area: $ 2,630 and $ 2,760. If the pressure on ETH persists, purchases in the area of the nearest support of $ 1,890 are not excluded. A break in this range will be the reason for a hike to $ 1,805, and then very close to $ 1,690, where the major players will again begin to actively act.
