During this morning's session, Bitcoin updated its level to $117,500. The key task for buyers now will be to keep trading above the $116,000 mark. Ethereum also refreshed its high near $3,900, maintaining a strong chance for the bull market to continue.

Meanwhile, it was reported yesterday that the European Banking Authority has completed a draft of new rules requiring banks to hold significantly more capital as protection against so-called "unbacked" cryptocurrencies, such as Bitcoin and Ethereum.

This move, taken in response to the growing volatility and unpredictability of the crypto market, aims to strengthen the financial stability of the banking system and protect depositors from potential losses. The new rules are expected to have a significant impact on banks engaged in cryptocurrency operations. Increased capital requirements will force them to review strategies and possibly reduce the volume of transactions with digital assets. This could slow the development of the crypto industry in Europe, but it may also improve its reliability and attractiveness to investors who are wary of high risks.

Stricter requirements for banks working with such assets may limit liquidity and reduce demand for unbacked crypto assets. On the other hand, this could encourage the development of more reliable and regulated cryptocurrencies backed by real assets or with a clear legal framework.

In its published final draft of regulatory technical standards, the European Banking Authority stated that the rules are designed to address implementation issues and ensure the harmonisation of capital requirements for crypto assets held by institutions across the EU. These rules will apply to European Union banks holding crypto assets on their balance sheets. Once the final draft is sent to the European Commission, Brussels will have three months to decide whether to approve it in its current form or return it for revision. After approval, the legislation will become a delegated regulatory act and be forwarded to the European Parliament and Council, with a three-month objection period that could be extended to six months.

Trading recommendations

Buyers of BTC are now targeting a return to $117,500, which opens a direct path to $118,800 and then to $120,400. The furthest target would be the high near $121,700, a breakout above which would confirm the bull market's strength. In the event of a decline, buyers are expected at $115,600. A return below this area could quickly send BTC towards $114,100, with the ultimate downside target at $112,800.

As for Ethereum, a clear consolidation above $3,941 would open the way to $4,055. The furthest target would be the high near $4,199, a breakout above which would reignite buyer interest. In the event of a drop, buyers are expected at $3,827. A move below this area could quickly send ETH towards $3,717, with the furthest target at $3,600.

What we see on the chart:

• Red lines — support and resistance levels expected to either slow down or accelerate price movements.
• Green lines — 50-day moving average.
• Blue lines — 100-day moving average.
• Light-green lines — 200-day moving average.

A crossover or test of these moving averages usually halts the market or sets a new momentum.