Bitcoin (BTC/USD) and Ether (ETH/USD) have surrendered a portion of their recent gains which have seen prices slide throughout the day. After rebounding back to favorable levels last week, price action has remained stepped away from further upside potential, at least for now.

As the number of Covid-19 cases continues to surge, with the Delta variant as the prominent contributor to the recent outbreak, sentiment remains well poised for safe-haven assets such as Gold and Silver but for cryptocurrency, the result may be two-fold as regulators continue to clamp down on the ability to invest or trade digital assets.

Following a series of positive tweets and interviews last week, with crypto enthusiasts, Cathy Wood, Elon Musk, and Jack Dorsey talking up the bull run, Amazon’s denial of allegations that the group would be accepting Bitcoin as payment by the end of the year hindered the ability for bulls to maintain favor above $40k.

After 10 consecutive days of gains, Bitcoin (BTC/USD) bulls ran into a wall of resistance at $42,397, the 38.2% Fibonacci retracement level of the April – June 2021 move. With regulatory concerns still in the mix, the denial of recent allegations that Bitcoin would soon be adopted by tech giant Amazon weighed on the major cryptocurrency, highlighting the controversial and volatile nature of the space.

With prices retracing back to the $38,000 level, further developments in price action may unfold ahead of this week’s major event risk, specifically towards the major counterparts that may hold strong for the foreseeable future.

DailyFX, Economic Calendar

Bitcoin (BTC/USD) Price Action

As the 8 and 34-period Exponential Moving Average continues to track the daily movements in close proximity, with MACD currently hovering around the zero line.

With price action currently encapsulated between prominent levels, the ability to break below the key psychological level of $38,000 may give rise to further bearish motion.

(Click on image to enlarge)

Source: TradingView, Chart by Tammy Da Costa

For Ether (ETH/USD), prices have retraced towards the $2300 mark with price action still tracking Bitcoin.

As prices continue to trend towards $2400, the short-term trend remains in favor of the long-term trend. As depicted by the EMA, ETH is heading in an upward direction with the big question of whether it can sustain.

Ether (ETH/USD) 4-Hour Chart

Chart Prepared by Tammy Da Costa using IG Charts