The evolution of the market during the past week was quiet and Bitcoin is now trading just above the important level of USD 41,000. 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.
Robinhood, a major cryptocurrency-friendly stock trading app, is pushing global expansion by acquiring the United Kingdom-based crypto-asset firm Ziglu.
Robinhood officially announced Tuesday that it had signed a deal to acquire Ziglu, subject to regulatory approvals and other closing conditions. The firm declined to disclose the size of the deal to Cointelegraph.
There are already digital means of payment’: EU Commission gets 11,000 public comments on CBDC project
In less than two weeks since the European Commission opened its “Digital euro for the EU” initiative up to public consultation, more than 11,000 individuals and organizations have left their feedback on the website. The feedback section will be open until June 14.
Besides the open-ended comments section on the website, there is a targeted consultation questionnaire that aims to collect information from the industry representatives, authorities, and experts regarding such aspects of the prospective digital euro as privacy and data protection, Anti-Money Laundering (AML), and Combatting the Financing of Terrorism (CFT) rules, the impact on financial stability and users’ needs and expectations.
How Web3 is redefining storytelling for creators and fans through NFTs
Nonfungible tokens (NFTs) have come a long way in a relatively short period of time. In 2017, the NFT project CryptoKitties made headlines as the largest decentralized application on the Ethereum network. While CryptoKitties accounted for a notable portion of Ethereum transaction volume in 2017, these NFTs mainly served as digital collectibles geared toward the crypto community.
It wasn’t until March 2021 when NFT artwork started gaining traction due to the financial potential behind these creations. This was demonstrated when digital artist Mike Winkelmann, also known as Beeple, sold his NFT piece titled “Everyday: The First 5,000 Days,” which raised over $69 million through Christie’s auction house. Following Beeple’s sale, artwork NFTs started becoming more popular, attracting a larger audience of both creators and fans.
Bitcoin closed last week on the middle part of its support zone located at USD 39,600. The beginning of this week was even worse with a test of the USD 38.500 level and BTC now trading around the USD 43.000 level.
From a price action point of view, this represents, if the movement continues in this direction, a new higher low, which is quite positive for the continuation of the trend.
Of course, from a macro point of view, BTC will only validate this resumption of the trend if it manages to close above USD 48,000 initially and especially above USD 52,000.
As usual, Ethereum’s analysis follows BTC’s very closely and that’s to be expected given the correlation of the crypto market. ETH also did not lose its support area at the close, despite a foray to the USD 2.880 level intraday.
Ethereum’s daily technical situation is now rather neutral with WaveTrend already crossing higher and MACD about to cross. On an even shorter time frame, in 4 hours, the indicators are also bullish.
Altcoin of the week: NEO
The NEO/USDT pair also marked a higher low over the weekend and is now trading just below its important resistance zone between USD 22.20 and USD 22.96.
If NEO manages to break through this area and tag above USD 23.50, we may open a buy position on the retracement.
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, stay safe and take care of yourself!
Have a great week everyone!