Continuation of consolidation for Bitcoin and Ethereum

Bitcoin chart analysis

The Colombian tax administration is tightening the circle around bitcoin and tax evasion related to cryptocurrencies in the background of the growing adoption of cryptocurrencies.

The Colombian tax administration has started to enter the race with bitcoin. It seeks to take special measures to tax all those who evade cryptocurrency taxes.

In a statement issued last Friday, the Colombian Tax Administration said it would try to regulate the cryptocurrency space better and work for a “fairer” Colombia. It is a tiny surprise because Colombia is an increasingly active country for adopting bitcoin and cryptocurrencies. Colombia is consistently the second most active country for bitcoin trading in Latin America. Meanwhile, a search on Coinmap shows hundreds of merchants and ATMs across the country for Bitcoin services. Indeed, according to the Venezuelan newspaper El Nacional, there are 687 bitcoin-friendly vendors in Colombia.

Although hardened crypto, libertarians may be dissatisfied with the tax authorities who are trying to regulate space. This move could be encouraging for greater adoption of crypto as a means of payment.

Current Colombian law requires its financial institutions to protect, invest, mediate or manage cryptocurrency transactions. Colombian citizens can invest, and some old financial institutions are paving the way for greater adoption of cryptocurrencies in a country known as the “gateway to South America.”

Bullish scenario:

  • The price of Bitcoin is still in bullish consolidation; we are now at $ 38,620.
  • We are supported by MA20 and MA50 moving averages together with the lower trend line.
  • Price looks at 40,000 as the next target and potential resistance.
  • Further positive consolidation and a break above $ 40,000 could climb us to $ 42,000; an additional resistance to $ 41,000 is our MA200 moving average.

Bearish scenario:

  • We need negative consolidation and lowering the price below the moving average and the lower trend line.
  • A break below this support could lower us further first to $ 36,000, then to $ 34,000 of previous support.
  • At $ 32987, we come across this year’s minimum, and if it doesn’t hold up, there’s a good chance we’ll visit the $ 30,000 level.

Ethereum chart analysis

The price of Ethereum is in bullish consolidation, around $ 2800. After falling to $ 2160 on January 24, we can now say that we are in a bullish trend and are slowly recovering. We are still looking at $ 3000 as the next place where the price could be. It would be very helpful if the price exceeded the MA200 moving average, further increasing bullish optimism and attracting new customers.

Bullish scenario:

  • We need continued positive consolidation and a stronger break above $ 2800.
  • We have support in MA20 and MA50 moving averages, and the price should use that to its advantage and continue the bullish trend.
  • Our first target and resistance is at $ 3,000, and the additional resistance at that level is our MA200 moving average.
  • A break above that zone would get us out of bearish pressure, and our next target is $ 3,200, high from January 20.

Bearish scenario:

  • We need this negative consolidation and price retreat towards $ 2600.
  • At that level, the MA20 and MA50 and the lower trend line can provide us with potential support.
  • Break below brings us further towards $ 2400, then in this year’s low zone to $ 2160.
  • The main psychological level for the price is $ 3000.

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