Today's daily move has been consistent and small with the only daily candle showing losses (currently), since BTC hit a $29,000.50 low on July 21. The minor sell-off today was partly driven by the news that Binance, the largest crypto-exchange in terms of turnover, has stopped offering derivative and futures products in Germany and Italy with immediate effect. Binance continues to be under intense scrutiny by a variety of regulators, this is just the latest in a series of business closings. Changpeng Zhao, Binance CEO, said this week that he would resign if a successor could be found. The company is currently seeking regulatory approvals and licenses across the globe.
Bitcoin (BTC), continues to resist resistance at the $40k-$42.k zone, although minor pullbacks suggest that further attempts are possible in the near future. The prior resistance of just below $37k should be used as support. This is especially important after Bitcoin broke through the simple moving averages for 20 and 50 days. CCI indicates that the market is overbought. This suggests a short-term period with sub-$40k consolidation, before making a new push higher.
Ethereum (ETH/USD) is likely to see a pick up in volatility over the next few days as the 'London' upgrade comes into view. Next week is likely to see the upgrade (EIP 1559), which will improve clarity on miners' fees and reduce supply of Ethereum tokens. It also expects to see block sizes doubled.
Although Ethereum is having trouble breaking out of its current range, the price action suggests that further attempts may be possible. ETH is now above the three moving averages. It has just pushed into overbought territory but it has been at higher levels for the past few months. This trading pattern also resembles the price action in February and April of last year, when ETH moved sharply higher. The previously mentioned moving averages of $2,135 to $2,065 provide initial support.
The Ethereum/Bitcoin spread has been gaining momentum and is approaching trendline resistance, which has had a negative impact on the spread in the past few months. The support level of 550 holds, leaving an area of support and resistance that will continue to exist in the near future.