The evolution of the market during the past week was still quite negative with not a lot of moves and Bitcoin is now trading just below the important level of USD 30,000. 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:
Binance will welcome migration and offer support to projects from the Terra (LUNA) ecosystem following this month’s unraveling of the decentralized finance (DeFi) platform and its algorithmic stablecoin.
BNB Chain (BNB) has committed to providing investment and support to projects that are considering migrating from the Terra ecosystem in the wake of the biggest black swan event to hit the cryptocurrency space in recent years.
Stader Labs will become one of the first Terra ecosystem projects to begin integrating with the BNB Chain. The firm builds liquid staking solutions across four blockchains, namely Solana (SOL), Near (NEAR), Fantom (FTM) and Hedera (HBAR), and is set to offer BNB liquid staking through a newly announced partnership.
Crypto derivatives exchange and NFT platform FTX is reportedly in the market for brokerage start-ups as part of its recently announced plans to expand support to stock trading.
The firm announced last Thursday that its U.S.-based subsidiary FTX.US will be launching zero-commission stock trading via its app, and will allow users to fund their accounts with fiat-backed stablecoins.
According to a May 23 report from CNBC — who cited sources that “asked not to be named because the deal talks were confidential” — the firm has held private meetings with at least three brokerage startups over the past few months regarding potential acquisitions.
A mysterious Redditor has made a data-driven prediction that the next major phase of development in the blockchain space will be in layer-2 solutions, primarily on Ethereum.
The May 22 post explains that “We’re at a turning point” where the industry is moving away from bridging between L1 blockchains toward L2s which are “right out of the gate, more secure and decentralized than alt-L1s and are built to use sound money on a credibly neutral platform
Last week Bitcoin closed in the red for the eighth week in a row, something that has never happened at least since the listing on Binance. So we’re in extremely short-sale territory filled with fear. The proof is in the fear and greed index, which shows a level of 12.
This is of course not enough to buy the market, but we can at least expect a rebound, after two months of uninterrupted decline.
The technical indicators on the weekly horizon are still negative but are heading towards their oversold zone, before a possible reversal.
No rush here, we will of course wait for USD 34,000 before doing anything!
Ethereum is not doing any better than its counterpart BTC and last week was rather flat for ETH too. The latter managed to stay above the USD 1,700 level for one more week.
The daily technical situation is positive with the MACD and WaveTrend already giving a buy signal.
As long as we stay below $2200 though, no rush.
The XMR/USDT pair failed just below its important level of USD 205.00.
If the latter manages to be breached and XMR tags at least USD 230.00, then we can open a position around USD 205.00 on the retracement.
In the meantime, stay safe!
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!