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Market Analysis: BTC, ETH & LTC - The evolution of the market during the past week was extremely negative with a BTC that almost tested the mighty level of USD 20,000. Bitcoin is now trading just above level of USD 22,450. 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 & Litecoin

The evolution of the market during the past week was extremely negative with a BTC that almost tested the mighty level of USD 20,000. Bitcoin is now trading just above the level of USD 22,450. 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:

NFT trading volume surges amid market and floor price crash

NFT trading volume has surged over the past 24 hours as crypto markets tank taking floor prices of many top NFT collections along with it.

A long list of top NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Crypto Punks, and Sorare have all seen more than 100% increases in 24-hour trading volumes as investors look to snap up cheaper NFTs as floor prices tumble.

According to data from CryptoSlam, eight of the top 10 NFT projects in terms of 24-hour sales volume have posted at least a 115% increase in trading volume, with the only projects falling under that mark being Goblintown at 35.54% and Moonbirds at 64.11%.

Source: https://cointelegraph.com/news/nft-trading-volume-surges-amid-market-and-floor-price-crash

Scientists claim to have designed a fully decentralized stablecoin pegged to electricity

Researchers at the federally funded Lawrence Livermore National Laboratory in California have combined statistical mechanics and information theory to design a class of stablecoin dubbed the Electricity Stablecoin (E-Stablecoin) that would transmit energy as a form of information. Livermore’s Maxwell Murialdo and Jonathan L. Belof say their innovation would make it possible to transmit electricity without physical wires or a grid and create a fully collateralized stablecoin pegged to a physical asset – electricity – that is dependent on its utility for its value.

According to the scientists, the E-Stablecoin would be minted through the input of one kilowatt-hour of electricity, plus a fee. The stablecoin could then be used for transactions the same way as any stablecoin, or the energy could be extracted by burning it, also for a fee. The entire process would be controlled by smart contracts with a decentralized data storage cloud. No trusted centralized authority would be needed to maintain or disburse the asset.

Source: https://cointelegraph.com/news/scientists-claim-to-have-designed-a-fully-decentralized-stablecoin-pegged-to-electricity

Crypto crash wreaking havoc on DeFi protocols, CEXs

On Monday, a heavy cryptocurrency sell-off in the markets caused significant ripples for projects and entities alike. On popular decentralized finance, or DeFi, lending protocol Aave (AAVE), utilization rates have fallen across nearly all stablecoin borrowings. Most notably, borrowings for Binance USD (BUSD) now stand at a mere 30% compared to a high of 80% back in May.

The utilization rate is the ratio of borrowed to deposited funds. Since borrowers are required to post digital asset collateral before taking out a loan on Aave, users are likely withdrawing en mass in light of Monda’s sell-off to prevent liquidation. Data from DeFi Llama indicates that Aave’s total value locked has fallen from $33.51 billion last October to $8.11 billion.

Source: https://cointelegraph.com/news/crypto-crash-wreaking-havoc-on-defi-protocols-cexs


Bitcoin Analysis

Bitcoin Analysis

We had a little hope a week ago, with our first weekly candle closing in the green after a nine-week run in the red. Needless to say, the hope was short-lived my dear friends, with a loss of over 11% last week.

The start of this week is not much better with a loss of over 14% at the time of writing. The crypto market is in turmoil, to say the least. The next support level is now around $19,000 but it could go even lower.

A return to $13,000 is indeed no longer out of the question, but we should not rush to the short button just yet. Let me explain: if we forget the week in the green (slightly), this is one of the most unidirectional bearish phases that BTC has ever experienced.

So of course, there are a whole series of external, geopolitical, and macroeconomic factors that justify it, but there could still be a technical rebound. The latter will be a perfect short opportunity if it happens.


Ethereum Analysis

Ethereum Analysis

As you can imagine, if BTC catches a cold, Ethereum coughs, this is one of the consequences of the high correlation of the crypto market. ETH is therefore also in a tricky position, just below its former support area between $1220 and $1360.

The daily technical situation is of course negative with a MACD and a WaveTrend well oriented downwards. On a 4-hour time frame, the indicators are neutral with a buy signal given on the WaveTrend and a MACD that seems ready to cross.

Nothing to do on ETH for now!


Altcoin of the week : LTC

Altcoin of the week : LTC

The LTC/USDT pair also did not escape the turmoil in the financial markets and fell heavily.

On this corner, we will take advantage of a possible rebound to open a short position on the resistance zone between USD 64 and USD 70.

Do not overexpose yourself, as usual.


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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