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Market Analysis: BTC, ETH & COS - The evolution of the market during the past week was mostly flat with not a lot of move and Bitcoin is now trading just below the important level of USD 32,000. What can we expect next? We'll break this down later in the article but first let's go over the main industry news.

Market Analysis: BTC, ETH & COS

The evolution of the market during the past week was mostly flat with not a lot of moves and Bitcoin is now trading just below the important level of USD 32,000. 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 prices. 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:

The city of Shenzhen airdrops 30M in free digital yuan to stimulate consumer spending

According to local news outlet Shanghai Securities News, the city of Shenzhen will airdrop 30 million digital Chinese yuan (e-CNY) to local residents in an attempt to revitalize consumer spending.

The airdrop is a joint effort between the city of Shenzhen and Meituan Dianping, China’s leading food delivery app. As per instructions, users would need to first log in to the Meituan app, sign up for the incentive, and then potentially receive the e-CNY rewards as part of a lottery draw.

If chosen, the e-CNY is then dispensed to users and can be spent at more than 15,000 in-app merchant terminals that accept the state-owned digital currency. Previously, the People’s Bank of China had identified the e-CNY as a potential tool for advancing regional economies and improving the efficiency of select financial services. Meanwhile, sources at Meituan say that the e-CNY plays a vital role in boosting spending and revitalizing local businesses. Shenzhen is also currently one of three cities in China where residents can pay municipal taxes and charges with the e-CNY.

Source: https://cointelegraph.com/news/city-of-shenzhen-airdrops-30m-in-free-digital-yuan-to-stimulate-consumer-spending


Rival blockchain projects angling for talent from Terra developers

The collapse of the Terra ecosystem, which included most of its apps and protocols, has created a diaspora of developers from which opportunistic blockchain companies are hoping to snap up talent.

Polygon (MATIC), one of the largest blockchains by total value locked (TVL), is actively seeking out Terra developers to add valuable expertise and support to their efforts.

Polygon launched a “relatively uncapped multimillion-dollar fund” designed to entice Terra developers to migrate over to the Ethereum sidechain scaling solution, according to Polygon Studios CEO Ryan Wyatt speaking to TechCrunch at the weekend.

Source: https://cointelegraph.com/news/rival-blockchain-projects-angling-for-talent-from-terra-developers


Luna Classic (LUNC) pricing error leads to Mirror Protocol exploit

A mismatch in the reported price of underlying assets on synthetic assets DeFi platform Mirror Protocol has caused an ongoing exploit that has the potential to drain all of its funds.

The exploit was observed on May 29 by governance participant ‘Mirroruser’ on the protocol’s forum. As of the time of writing, the mBTC, mDOT, mETH, and mGLXY synthetic asset pools on the protocol have lost almost all of their assets valued at over $2 million.

The mirror allows the trading of synthetic assets, such as stocks and cryptocurrency on the Terra and Terra Classic layer-1 blockchains, BNB Chain (BNB), and Ethereum (ETH).

Source: https://cointelegraph.com/news/luna-classic-lunc-pricing-error-leads-to-mirror-protocol-exploit


Bitcoin Analysis

Bitcoin Analysis

Last week, Bitcoin once again made history with a ninth consecutive weekly close in the red. This is unprecedented in the history of Bitcoin.

It seems, however, that with each foray below the important USD 28,500 level, buyers are there to absorb the selling supply. Despite a lower low being registered, BTC is managing to stay above this level for now.

This week is off to a pretty good start with a 7% gain since the opening even if we have to be cautious about the rest of the week, we still have until Sunday to maybe finally have a positive close.

The first big test is the resistance zone between USD 32,000 and USD 34,000 and we will not open a long position until this is breached.


Ethereum Analysis

Ethereum Analysis

As you might expect, if BTC is showing some signs of improvement, Ethereum is following suit, right?

Well it’s true once again with ETH barely managing to stay above the USD 1,700 level and now trading just below USD 2,000.

The daily technical picture is now positive with both the MACD and WaveTrend pointing up. We can also see a bullish divergence on the WaveTrend.

As for BTC, it is too early to take any action on ETH.


Altcoin of the week: COS

Altcoin of the week: COS

The COS/USDT pair is currently trading around the USD 0.00800 level and is just below an important area between USD 0.00921 and USD 0.01125.

The daily technical situation is also positive on this pair, so we will open a long position if COS manages to close above its resistance zone and tag the USD 0.014 level.


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!

 

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