Cryptocurrencies led by Bitcoin and Ethereum returned to gains today after a tepid weekend that followed four straight days of gains.
Bitcoin is trading near the level of $26,677, and Ethereum at 1,632, at approximately six in the morning GMT, after noticeable gains we witnessed at dawn today.
Last week we saw a noticeable return in investor sentiment. Despite the continuing regulatory difficulties facing the cryptocurrency market in its various aspects. The return of investor sentiment was evident with the rise in the number of open interests for Bitcoin derivatives to the highest levels since the beginning of this September, at more than 7.829 billion contracts.
Meanwhile, eyes remain on developments in the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple Lab. While the company’s CEO, Monica Long, confirmed that the legal confrontation with the authority will continue until the end.
The company’s chief lawyer also spoke about the Authority’s inconsistent position and its lack of a clear basis in issuing its rulings. In addition to this is another series of previous statements from senior figures in the market, most notably the speech of the CEO of the Coinbase exchange, who encouraged other companies operating in the sector to go to the courts and refuse to settle with the authority.
These statements seem really encouraging to the markets, as they may suggest that a near victory for Ripple Lab may actually be achieved, given the indications of the weakness of the SEC’s position. This legal victory, if it actually occurs, could be important for the rest of the cryptocurrency market. It may contribute greatly to shaping the features of the regulatory and legal environment for this market.
This is because Ripple Lab is one of the parties in the market that most strongly adheres to and defends its position, in addition to its ability to bear the expenses resulting from these ongoing lawsuits. Therefore, it may be able to push until the end to obtain judicial support for its position, in which it believes that its sales of cryptocurrencies, XRP, are not unregistered financial instruments.
Technical outlook for Bitcoin
Technically, on the daily time frame, Bitcoin is facing resistance from the 26668-26741 levels. While a breach above these levels may shift attention towards the 27109 level, which may be followed by the psychological level at 28000.
Meanwhile, failure to consolidate above the 26405 level may shift sellers’ attention again towards the 26236 levels, which may be followed by the 25805-25944 levels.