Bitcoin volatility has been soaring since the start of the week, with the market's main cryptocurrency plunging on Monday and Tuesday morning, only to rebound Tuesday afternoon, climbing back above $27,000, more than reversing the gains of the day before.
However, the real context, full of pressure from regulators, and the technical context, which is still generally bearish, should encourage crypto traders to exercise caution against the BTC/USD price.
Bitcoin plunges on SEC lawsuit against Binance but ignores those against Coinbase.
Recall that Monday's fall in BTC was a direct response to the announcement by the US regulator, the SEC, of lawsuits against Binance and its boss CZ on various counts, including violations of securities law and the management of an unregulated stock exchange.
The SEC then hit the nail on the head on Tuesday by announcing similar lawsuits against Coinbase, the largest crypto platform in the United States. However, unlike the previous day, Bitcoin remained unaffected and displayed a sharp rebound.
After bottoming out at $25,350, BTC/USD has indeed started a rally, resulting in a high of $27,388.
Some analysts have explained this behaviour of Bitcoin by the fact that the SEC has threatened several crypto companies, including Binance and Coinbase, with lawsuits for months. So after the lawsuits against Binance initially surprised the market, crypto traders quickly put things into perspective.
And it is in this context that the lawsuits against the crypto platform Coinbase were announced yesterday, which therefore had only a limited impact.
BTC Holds Above Key Support, But Also Faces Major Hurdles
From a technical analysis perspective, it is encouraging that Bitcoin's fall on Monday did not lead the cryptocurrency to test the major psychological threshold of $25,000.
Yesterday's low at $25,350 and the psychological threshold of $25,000, therefore, constitute the first support to consider on BTC, and a break below it would be a noticeable bearish signal.
Assuming Bitcoin holds above the currently tested $27,000 threshold at the time of writing. In that case, the next significant hurdle will be the trendline stretching from the yearly high, currently at $28,000.
In other words, Bitcoin is stuck between major supports and resistances near current prices.
So the trend is currently uncertain, which makes taking positions in the crypto risky in the immediate term.
However, this could be an opportunity to take an interest in other crypto projects, much less known but with undoubtedly a much greater and clearer potential.
Indeed, although Bitcoin often takes centre stage in the crypto world, it is rarely BTC that offers the best short-term returns.
Thus, the savviest crypto investors hope to make significant gains by heading towards more unknown projects that the general public has not yet spotted, thereby offering a "first-mover" advantage.
Ecoterra, a crypto ecological project with high potential
Among the most recent projects, the one that caught our attention the most is Ecoterra, an ecological cryptocurrency. This theme is increasingly dear to the hearts of investors.
The Ecoterra project is based on an innovative concept of "recycle to earn", which allows users to earn rewards for recycling their waste. In addition, the project provides a marketplace for offsetting carbon emissions.
Finally, it allows participating companies to monitor the impact of their environmental protection actions to improve their brand image.
On presale, priced at $0.01 per token at the time of writing, the Ecoterra crypto has already raised over $4.8 million of the targeted $5.7 million. But it's still possible if you also want to take advantage of it since the current presale phase will remain active for the next 21 days!