Existing weakness or nascent strength in the cryptocurrency market?

Hello dear readers, in this opportunity to point out some perspectives of technical analysis that have begun to socialize about the upside potential that cryptocurrencies can develop, while some experts believe that regulatory measures on exchanges creates distrust and unbalances the market.

Therefore, in the face of these two conjectures, it is worth asking whether the existing weakness in the face of regulations on exchanges such as Kraken is an effect, or whether, on the contrary, there is strength within the cryptocurrency market that will allow it to overcome these vicissitudes and enter the bullish path.

The truth is that, according to an article published in Cointelegraph the existing weakness in the market was aggravated by an announcement from US regulators regarding Ethereum staking, with the important cryptocurrency exchange Kraken forced to suspend its staking operations and pay a fine of 30 million dollars.

On the other hand, and analyzing the behavior of Bitcoin price action at the chart level, the proximity of the spot price to the aforementioned 200-day moving average began to be observed.

Now, let's remember that the aforementioned 200-day moving average, has become a key trend line that Bitcoin recently recovered after trading below it since late 2021, a fact that is somehow interpreted in a good way by bullish traders.

Cointelegraph Bitcoin price faces key moving average showdown 3 weeks after breakout. Link

The cover image was designed by the author: @lupafilotaxia, incorporating the public domain image background: Cointelegraph