Bitcoin has slightly recovered its position; however, the risk of a new wave of sell-offs still prevails. Meanwhile, the market clings to every piece of positive news and reacts accordingly. It has become known that the US banking regulator has permitted banks to hold cryptocurrency in special accounts. However, this is exclusively for the purpose of paying network fees in blockchains. This is not about investments but rather a technical necessity — allowing banks to handle transactions in digital networks.

Clearly, such concessions are a positive step toward enabling traditional financial institutions to integrate with cryptocurrency infrastructure at a fundamental level.

The impact of this news on the cryptocurrency market was immediate. Bitcoin and other leading cryptocurrencies demonstrated a brief but noticeable surge, confirming the sensitivity of digital assets to regulatory and legal changes. Investors saw this move as a signal of the gradual legitimization of cryptocurrencies in the eyes of the traditional financial system, potentially attracting new participants and increasing market liquidity.

Although the allowance pertains only to the payment of network fees, it could be the first step toward broader use of cryptocurrencies in the banking sector. Banks, having the ability to work with digital assets, could develop new products and services related to cryptocurrencies, such as integrated wallets, crypto debit cards, or digital asset custody services.

However, it is important to understand that the path to full integration of cryptocurrencies into the banking system will be long and complex. Regulators worldwide remain cautious regarding cryptocurrencies, fearing their volatility and potential use for illicit purposes.

Nevertheless, the permission for American banks to hold cryptocurrency in special accounts is a step in the right direction, which could open new opportunities for the development of the crypto industry and its integration with traditional finance.

Trading recommendations

Regarding the technical picture for Bitcoin, buyers are currently aiming for a return to the level of $92,900, which opens a direct path to $95,900, and from there it is just a hand's reach to $99,400. The furthest target will be the peak around $102,400; overcoming this level would signify attempts to return to a bull market. In the event of a Bitcoin decline, I expect buyers at the level of $89,200. A return of the trading instrument below this range could quickly drop BTC to around $86,500. The furthest target will be the area of $83,900.

As for the technical picture for Ethereum, a clear consolidation above the level of $3,163 opens a direct path to $3,256. The furthest target will be the peak around $3,390; breaching this level would indicate a strengthening of bullish sentiment in the market and renewed interest from buyers. In the event of a decline in Ethereum, I expect buyers at the level of $3,048. A return of the trading instrument below this range could quickly drop ETH to around $2,940. The furthest target will be the area of $2,756.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.