Bitcoin recovery stumbles as European Union’s finance commissioner promises to regulate cryptocurrencies

Valdis Dombrovskis promises to implement crypto regulation.
Bitcoin retreated from the intraday high registered above $8.300.
Altcoins are still mostly bullish, though the growth momentum has been slowing down recently.

Tanya Abrosimova Independent Analyst

The European Union’s finance commissioner Valdis Dombrovskis promised to impose new rules for cryptocurrencies including Libra, if he is reappointed, Reuters reports.

“Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this,” he told EU lawmakers in his confirmation hearing.
He believes that by regulating digital currencies, the EU should tackle “unfair competition, cybersecurity, and threats to financial stability”.

Notably, in recent Dombrovskis refrained from regulating the crypto industry and taking a systemic approach to digital assets.

The cryptocurrency market is back in a green zone. Bitcoin bulls clawed back some ground after a devastating weekend and pushed the coin towards $8,300. At the time of writing, BTC/USD is changing hands at $8,240 with 5% gains on a day-on-day basis. All major altcoins followed the lead and recovered from the recent slump. However, the further upside may be limited as the bullish momentum is fading away on approach to critical resistance levels in several key cryptocurrency pairs.

The market capitalization of all digital assets in circulation increased to $223 billion from $216 billion on Monday, while an average daily trading volume edged up to $63 billion. Bitcoin’s market dominance is registered at 66.6%

Top-3 coins price overview

BTC/USD settled above $8,000, however, the recovery stalled at $8,300 hurdle. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on $8,500 strengthened by SMA200 (Simple Moving Average) on a daily chart.

Ethereum, the second-largest digital asset with the current market capitalization of $19.6 billion, has gained over 5% since this time on Monday to trade above $181.00. Notably, ETH/USD touched the intraday high at $185.40 but failed to hold the ground. A strong resistance area created by SMA50 daily seems to be a hard nut to crack for ETH bulls.

Ripple’s XRP led the altcoins recovery on Monday. XRP/USD has grown by more than 10% since the weekend to tested waters above $0.2850. A resistance created by the long-term sloping trend line might slow down the upside for the time being. The nearest support is located on the approach to $0.2700.

Author

Tanya Abrosimova

Independent Analyst

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