It is a question of whether BTC can avoid its first four weekly red candles since June 2020.
Bitcoin (BTC) held below $40,000 on April 24, as the weekly close appeared to be painful for the bulls.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair failed to recapture the $40,000 mark after losing it earlier on the weekend.
As traders braced for classic volatility at the weekly close, Bitcoin looked decidedly unappetizing. At $39,500 on Bitstamp, the spot price at the time of writing would constitute the lowest weekly close since the week of March 7.
Bitcoin was now facing the possibility of resistance consolidating at the $40,000 mark, with traders showing their lack of confidence in a short-term rebound.
Binance Offerings Slowly Dilute Below Spot
Data from on-chain analytics site Coinglass confirmed that funding rates on derivatives exchanges were firmly negative over the weekend, suggesting most market participants expected short strategies to be an upcoming profitable trade.
“Pretty obvious uptrend from mid to late January. If we get our fourth RED weekly close today, it could be bad,” the CryptoBull Twitter account commented in a discussion with popular analysts Johal Miles and Pentoshi.
Four red weekly candles in a row would be a rare event, the account added, noting their absence for the past two years on the weekly chart.
“It hasn’t happened since 6/2020. But after that happened we went up to the ATH,” Cryptobull wrote on Twitter.
Meanwhile, data from on-chain monitoring resource Material Indicators showed declining offers below the spot price, which nonetheless continued to retest the $40,000 resistance.
France Keeps Markets on Alert
Outside of technical signals, attention turned to France on Sunday as the presidential election ended.
With incumbent Emmanuel Macron expected to win a second term, the warnings painted a dire market reaction should his rival, Marine Le Pen, win the presidency.
“It would be a terrible day for the markets,” Ariane Hayate, a fund manager at Edmond de Rothschild Asset Management, told Bloomberg.
“The first impact would be on the French 10-year bond yield which could skyrocket,” the fund manager added.
Analysts Say Bitcoin “Has Already Capitulated,” Pointing to $41,300 as the Level to Hold.
As Cointelegraph reported, the financial fragility of the European Union has come to the fore as inflation soars and central bank balance sheet drawdowns have yet to come.
Meanwhile, European Union Rolls Up Sleeves to Regulate Cryptocurrencies
The European Union wants a single and harmonized regulation to regulate the universe of cryptocurrencies. A week ago, the European Parliament took a definitive step in this direction by giving the green light to the proposed MiCA Regulation (Markets in Crypto Assets), where the amendment proposal to prohibit or restrict the circulation of the Bitcoins.
The lack of a common law on virtual currencies is a brake on “the arrival of institutional investors and large fortunes in the sector.” This is the opinion of Lorena Martínez Romero, director of the risk and regulatory compliance department of the platform to sell and buy cryptocurrencies 2gether.
In her view, a regulation that guarantees a common regulatory framework between territories would dispel the doubts of investors who are still suspicious of the crypto world. This standard, however, could take a couple of years to arrive.
Until then, digital assets pose numerous legal challenges. “Legal certainty and uniformity are required, at least within the European Union. The main reluctance is the high volatility, the lack of government support and, in my experience, the little regulation that exists,” says the compliance officer.
By Audy Castaneda
