Bitcoin and ether continue to gain value. In just a few days, ether has added more than 15% and ran into the resistance level of $1,640. The price of BTC is heading towards $23,000. However, let's put aside technical analysis and first consider some fundamental factors affecting dynamics in the cryptocurrency market. Amid a recent collapse in the digital market, which forced a number of the largest cryptocurrency companies to declare bankruptcy, the Singapore authorities decided to broaden the scope of cryptocurrency regulations to cover more activities. They joined a worldwide push to clamp down on risks after a series of business failures rocked the industry.
The Monetary Authority of Singapore plans to consult on proposed steps to regulate cryptocurrencies as early as September or October of this year, Managing Director Ravi Menon said. The revised rules may include further tightening retail-investor access to crypto, he added without providing details. "Going forward, in line with international regulators, we're also going to be broadening the scope of regulations to cover more activities," Menon said.
As noted above, this year's market crash has exposed the cracks in global crypto regulation. Digital-asset lenders and creditors have lost billions of dollars and are currently trying to claw back money from collapsed hedge fund Three Arrows Capital. The upheaval began with a collapse of the TerraUSD stablecoin. Crypto Lender Celsius also filed for bankruptcy. Many of the defunct companies operated outside the scope of existing regulations, and their failures highlighted risky business practices as well as billions of dollars in debt. Regulators from the US to Singapore are now racing to patch those holes, while acknowledging that the effort will require more global coordination.
From a technical point of view, market sentiment on bitcoin has changed a bit. Speculators are expected to make every effort to protect the nearest important support level of $21,875. If the price breaks through and fixes below this mark, the trading instrument will slide to the lows of $21,140 and $20,500. In this case, BTC may well head for $19,880 and $19,320. If an upward correction continues, bears will try to regain control of the nearest resistance level at $22,850. Only consolidation above this range will return the asset back to $24,280 and $25,750. In this situation, the $26,780 area can be seen as a more distant target.
Ether is back in the spotlight. The digital asset has managed to reach fairly high levels, which makes it quite attractive. Buyers will now strive to break above $1,540. If the price rises above this level, ether will be able to hit a new high around $1,644. When the price jumps to $1,740, it will be possible to talk about a bullish trend in the medium term. Price consolidation above this mark will result in a rebound to the key level of $1,830. In case ETH comes under pressure, bulls will make every effort to protect $1,470. If the price breaks through this range, it would be a wise decision to consider long positions in the area of $1,385 and $1,320.
