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Supported by the 2% increase in the price of Bitcoin, the main cryptocurrencies, including Ethereum, have shown a renewed short-term momentum.
Ethereum (ETH), Bitcoin Cash (BCH) and many other small cryptocurrencies with market capitalization reported gains in the range of 4 to 12 percent, with the BCH reporting a solid 10 percent increase in value.
The volume of the cryptocurrency market, which as reported by CCN on 6 November, remained at about $ 3 billion, increased to $ 16 billion from less than $ 10 billion last week, showing a 60% increase in volume in a seven-day period.
Where are Bitcoin and Ethereum Headed?
Squeeze, a cryptocurrency trader, said that given the three-month consolidation period of Bitcoin in the $ 6,000-half region, the likelihood of BTC starting a significant short-term surge remains relatively low.
The launch of the Bakkt Bitcoin futures market on December 12 could be an important catalyst to affect the short-term movement of BTC prices. Until then, the price of BTC should remain between $ 6,400 and $ 7,000.
BTC has been consolidating in this interval for months. I expected the descending triangle to break but it did not happen. Fundamentally more likely aspect towards an upward demonstration until the launch of Bakkt (12 Dec), " He said.
Currently, BTC is seeing a break in the resistance level of $ 6,600 with the potential to exceed $ 6,800. The dominant cryptocurrency was able to exceed the $ 6,600 threshold once in mid-September and has since failed to test the level.
Given the increase in daily trading volume from $ 4.2 billion to $ 5 billion in the last 24 hours, there remains a possibility of a short-term price movement of $ 6,600.
"The levels of resistance I am observing are horizontal red lines, $ 6.600 / $ 6.650 later, levels should be fairly obvious and previously acted as resistance, all the more, all the more significant. , small increments represent the noise " He said technical analyst Alex Kruger.
Tokens are increasing, but the SEC could have an impact
At the conference of the D.C. Fintech Week, the director of SEC's SEC (Securities and Exchange Commission), William Hinman, has stated that any token that can be recognized as a tool that allows an individual or company to predict an expectation of return will be considered a security.
"If someone offers a tool for money or other consideration to a third party and that third party expects the offerer to generate a return or something that will increase the value of the coin or token or anything else they want to call it, and c & # 39; it is this expectation of return, generally we will see it as an offering of securities ".
Based on the statement provided by Hinman, a large group of tokens can be considered as securities under existing US laws and initial coin offerings (ICO) projects that have initiated token sales with the participation of US investors could lead to repression from the SEC.
While many tokens recorded gains in the 5 to 20 percent range in the last week, regulatory uncertainty about tokens and their regulatory nature could lead to a decline in the value of tokens in the weeks to come, while the SEC publishes its new guideline.
Shutterstock foreground image.
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