The evolution of the market during the past week was quite negative and Bitcoin is now trading just above the level of USD 20,000. What can we expect next? We'll break this down later in the article but first, let's go over the main industry news.
NEWS
News is one of the factors that impact cryptocurrency price. It is important for every trader to stay up-to-date with the latest developments in the sphere. We’ve hand-picked some of the most interesting ones for you:
FTX US wins auction for Voyager Digital’s assets
Cryptocurrency exchange FTX US has secured the winning bid for the assets of crypto brokerage firm Voyager Digital with a bid valued at approximately $1.4 billion according to Voyager.
Voyager said the bid was made up of the fair market value of its crypto holdings “at a to-be-determined date in the future” estimated to be around $1.3 billion along with $111 million of what it says is “incremental value,” but did not provide further details.
Little information was given regarding what will happen to Voyager customers still awaiting access to their crypto holdings, with Voyager stating additional information about crypto access “will be shared as it becomes available.”
Source: https://cointelegraph.com/news/ftx-us-wins-auction-for-voyager-digital-s-assets
What will happen to Bitcoin and Ethereum if traditional markets break?
Michael J. Burry, the financial wizard who was portrayed in the movie "The Big Short", is known for predicting crises. For instance, his investment fund made billions from the 2008 housing crash, and Burry liquidated almost all his entire portfolio during the 2Q of 2022.
Given that no one seems to know whether traditional markets will bounce before entering a further recessive environment, it might be a good time to consider investing in cryptocurrencies. Below are some examples on how experienced investors sometimes miss incredible rallies.
In May 2017, Burry said people should expect a "global financial meltdown" and World War 3. Instead, the S&P 500 rallied 20% over the following 9 months. A couple of years later, the index peaked in December 2021, at a level that was more than 100% above Burry’s suggested short entry price.
Source: https://cointelegraph.com/news/what-will-happen-to-bitcoin-and-ethereum-if-traditional-markets-break
Singapore strives to remain relevant amid regulatory tightening for retail investors
Singapore's largest bank, DBS, has announced another move to expand its crypto services while remaining cautious in complying with the financial authorities' view that crypto assets are not suitable for retail investors in the country.
On Friday, the bank disclosed its decision to expand crypto trading services on its digital exchange (DDEx) to approximately 100,000 "wealth clients who are accredited investors." Investors who are considered accredited must meet certain criteria regarding their income, net worth, qualifications and understanding of financial markets.
Bitcoin Analysis
Last week was negative once again for BTC with a loss of 3% on the Binance platform. Prices are now hovering just above the USD 20,000.
The weekly volume was significantly higher than the average level once again, even higher than the previous week. In fact, this is the highest volume ever measured on Binance since its listing in a week.
This week is starting in positive with more than 7%, a MACD positive and already ⅓ of the volume done from last week in only 2 days.
Let’s keep a cool head and wait for a proper confirmation, a breakout above the USD 24,000 - 25,000 would be a good start! If BTC were to break the USD 17,500 support level, we could decrease towards USD 13,000.
Ethereum Analysis
As usual, when BTC does something, Ethereum follows suit. This time ETH lost almost 3% in one week.
The daily technical situation is now neutral with a MACD which will turn positive and WaveTrend also positive. On a 4-hour time frame, the indicators are now positive.
Currently the USD 1,350 level is holding, if it breaks we could see ETH at USD 750.
Conditionnal long on OMG!
OMG/USDT is now trading at around USD 1.80. If OMG manage to overcome the USD 2.3 - 2.55 zone and tag 2.8, we’ll open a trade on retracement.
Conclusion
Market sentiment can reverse very easily on cryptos as we just saw this week again. Careful though, as long as we don’t have confirmation, we must base our decision on fact and for now we must be patient.
There is nothing more important for success in trading. Plan the trade and trade the plan! As simple as that. In fact, don't be tempted to take dangerous positions and wait for confirmation.
I'll see you next week, take care of yourself!
Have a great week everyone!
