The evolution of the market during the past week was quite negative and BTC is still trading above the important level of USD 38,000 after testing the USD 42,000 zone. 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 is one of the factors that impact cryptocurrency prices. Every trader needs to stay up-to-date with the latest developments in the sphere. We’ve hand-picked some of the most interesting ones for you:
European Parliament votes against PoW ban, providing huge relief to the crypto industry
Earlier on Monday, members of the European Parliament’s Committee on Economic and Monetary Affairs voted against a version of the Markets in Crypto Assets, or MiCA, bill that could have effectively banned proof-of-work-based cryptocurrencies within the EU. This comes as a huge relief for the crypto industry, whose representatives had previously warned about the threat of a hardline regulatory scenario.
Ukrainian government launches crypto donation website with FTX, Kuna and Everstake
Crypto exchanges FTX and Kuna and staking platform Everstake have partnered with Ukrainian government officials to launch a donation website for users wishing to send crypto to help the country and its people.
On a Monday announcement, Ukraine’s Ministry of Digital Transformation said the government had launched Aid for Ukraine, a platform that accepts donations in Bitcoin (BTC), Ether (ETH), Tether (USDT), Polkadot (DOT), Solana (SOL), Dogecoin (DOGE), Monero (XMR), Icon (ICX), and Neo (NEO) “to support people in their fight for freedom.” Many parts of the country have been under attack by Russia’s military since Feb. 24.
Here’s how Asian countries deal with crypto sanctions against Russia
Japan became the latest country in Asia to call cryptocurrency firms to comply with sanctions against Russia, requesting on Monday that they not process crypto transactions involving sanctioned individuals or entities in Russia and Belarus.
The Japanese Financial Services Agency (FSA) and the Ministry of Finance issued a joint statement on sanctions against Russia, stressing that crypto is part of the restrictions and any crypto assets identified to be related to sanctions should be frozen.
The situation is becoming increasingly worrisome for BTC, with now 3 weeks without managing to close above USD 40,000. The daily chart of Bitcoin is becoming more and more frightening.
The moving average which was still coinciding with the USD 46,000 level two weeks ago is slowly moving towards the USD 42,000 level.
As long as we are not above these two levels, we can expect more downside and I would advise against taking a swing position.
The same is true for Ethereum, which recently managed to record a lower high at USD 2,445 before failing to reach its wilder moving average on the daily horizon.
The geopolitical situation, as well as the prospect of an interest rate hike by the FED, does not help the market at all, which is in risk-off mode.
If ETH breaks the very precise level of USD 2,432, we can expect a foray below USD 2,000.
Altcoin of the week : AION
The crypto market is particularly correlated, so I’m not going to recommend an altcoin to buy in a context like ours.
What we will do, however, is to take advantage of a probable breakout of the last defense zone of AION, in order to position ourselves short on retracement.
Specifically, if AION breaks its support zone between USD 0.056 and USD 0.065, we will open a short trade to target a return to USD 0.03.
Market sentiment can reverse very easily on crypto but we must always adopt a consistent behavior : Rely on facts and control our emotions.
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, stay safe and take care of yourself!
Have a great week everyone