Bitcoin’s trading range moved up last week as both the upper and lower bounds of the range moved significantly higher respectively from the previous week’s positions. The price is below $31,000 currently, and below the Fibonacci 261.8 level after a rally that resulted in the breakout above Fibonacci 261.8 level that took the price to a twelve-month high followed by a retracing down. The RSI indicator breached into the overbought zone and is currently declining on its way to reenter the neutral zone. The price is in consolidation mode trading sideways as bears are challenging bulls’ grip on market control.
Stock markets traded lower last week while the Bank of England delivered a hawkish surprise Thursday, hiking by 50 basis points as policymakers reacted to wage growth and inflation figures that both came in hotter than expected. Meanwhile data suggest Bitcoin appears in a period of accumulation, European Union is expected to publish new laws on Central bank Digital Currency (CBDC) next week while the IMF says crypto ban may not be best approach to balance risk and Demand.
Bitcoin is flowing into wallets controlled by illiquid entities - participants with little-to-no spending history - at the fastest rate in six months, according to Glassnode’s data. Glassnode’s illiquid supply change metric, measuring the number of coins held by illiquid wallets on a specific date compared with the same day the previous month, rose to 147,351.58 BTC ($3.9 billion) last Monday, the most since December 19. Analysts contend it shows investors remain confident of bitcoin's price prospects.
The European Central Bank (ECB) and European Commission experts are working on technical details for a digital euro ahead of publishing the new CBDC laws next week. However Markus Ferber, economic spokesperson for the largest political grouping in the European Parliament’s economic affairs committee says “the European Central Bank and the European Commission have yet to make a clear and convincing case of why we need the digital euro.”
Banning crypto may not be the best way of mitigating the associated risks, the International Monetary Fund said last Thursday. A few months earlier IMF had suggested that approach as an option. It now contends doing so would also prevent countries from gaining the associated benefits.