The evolution of the market during the past week was still quite negative with a BTC that tested the level of USD 17,600. Bitcoin is now trading just above the level of USD 21,000. 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 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:
Olana-based decentralized finance (DeFi) lending protocol Solend has created another governance vote to invalidate the recently-approved proposal that gave Solend Labs “emergency powers” to access a whale’s wallet to avoid liquidation.
On Sunday, the crypto lending platform launched a governance vote titled “SLND1: Mitigate Risk From Whale.” It allowed Solend to reduce the risk the whale’s liquidation poses to the market by letting the lending platform access the whale’s wallet and letting the liquidations happen over the counter.
Australian-based cryptocurrency exchange BTC Markets has become the first crypto company in the country to gain a financial services license.
The license was issued by the country’s financial regulator, the Australian Securities and Investments Commission (ASIC), to BTC Markets’ sister company BTCM Payments.
An Australian Financial Services (AFS) license allows the holder to give advice, deal in, and create a market for a financial product. It also permits the provision of custodial or depository services, amongst other perks.
The Sepolia testnet Beacon Chain has gone live, setting the stage for its merge dress rehearsal to give Ethereum network developers valuable technical insights.
Upon merging with its dedicated Beacon Chain, the Sepolia testnet will begin reaching consensus using proof of stake (PoS) rather than proof of work (PoW) which will provide data on what may happen when the Ethereum mainnet performs its merge.
Testnet merges are essential for Ethereum developers and independent project developers using the Ethereum network to understand what they can expect when the actual merge takes place. Just like on the testnets, the Ethereum mainnet merge will see the entire network transition to PoS consensus and should reduce the energy consumption of Ethereum by 99.9%.
What a week it has been again my dear friends. This time BTC has done it with a 22.58% drop in closing, the biggest week of decline since May 2021. The trading volume this week was incredibly high and not unlike the week of May 17th.
As a reminder, this date marked the beginning of a new bullish phase after this episode of capitulation. The last week also resembles a capitulation episode, with BTC losing at its lowest point, more than 30% last week.
Now as you know, we will never make the assumption that a bottom has been reached if we have no confirmation and for the moment we have none. So it could be that BTC will continue to fall to the USD 12,000 – USD 13,000 level.
When BTC catches a cold, Ethereum usually sneezes right? Well, last week was no different and ETH recorded, for the second week in a row, a drop of over 20%. ETH is now trading just below its resistance level between USD 1,200 and USD 1,350.
The daily technical situation is now rather neutral with a buy signal already given by the WaveTrend and a MACD that has not yet crossed upwards.
On a 4h time frame, the indicators are both positive but we can already see some signs of bearish curves.
Nothing to do on ETH for now!
The LTC/USDT pair also did not escape the turmoil in the financial markets and fell heavily.
On this coin, we will take advantage of a possible rebound to open a short position on the resistance zone between USD 64 and USD 70. We were quite far from this entry zone last week but we are slowly approaching it!
Do not overexpose yourself, as usual.
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!